Debt Consolidation

Use your home equity to reduce credit card debt.

Many Canadians are taking advantage of refinancing some of the equity in their Spruce Grove  mortgage to reduce their credit card debt. Why pay high interest rates on your bank's credit card debt when you can add that debt to your mortgage and pay a much lower interest rate! One important part of a strategy is knowing "good debt" from "bad debt". A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way.

1. Consolidate high interest rate credit cards to one lower rate.
2. Save money and increase cash flow.
3. Reduce stress knowing that your financial situation is now manageable.

If you'd like to have a conversation about refinancing your debt, give us a call today to review your options. It's time to beat the banks!

How Debt Consolidation Can Help You Get Out Of Debt?

Spruce Grove Debt consolidation is often the only remedy to multiple impending loans. When you run into too many debts and you struggle to repay them in a timely manner or fail to repay some of them in order to keep paying the others, the only way in such situations to get out of debt is through debt consolidation.

The concept of debt consolidation is very simple. All your loans are brought together or combined into one loan. A lender will offer you a loan amount that can settle or repay all your debts and you would have only one debt to pay. This debt is usually at a much lower rate of interest and the repayment terms are quite flexible. Besides, you get a longer repayment term and less charges or fees for late payments or arrears.

To understand how debt consolidation can help you get out of debt, you have to look at the realities that have made life difficult for you.

When you have multiple debts, there are different repayment terms. The clauses governing your repayment would vary. The rates of interest would also be different. Some credit cards charge exorbitantly. Some lending schemes have very unfair rates of interest. The reason why repayments become difficult to bear is because of the rates of interest. You end up paying more interest than the actual amount you had borrowed. Then there are the late fees, hidden charges and various penalties which take a much larger toil on your financial health. The only way to counter these mounting debts is to find a more economic and convenient way to repay.

When you opt for debt consolidation, you don’t pay multiple rates of interest. You don’t have to pay the high rates that credit card companies charge you. Debt consolidation companies know that you are struggling to repay and thus the rates of interest are lowered and the repayment is made flexible. There are easier installments which are designed bearing in mind how much you can afford and not how much you have to pay. The primary reason why people run into bad debts is because they cannot afford the repayment or installments. When installments are reduced by increasing the term of repayment, people with bad debts will end up paying. You also don’t have to deal with the late fees, penalties and hidden charges. These easily save hundreds of dollars taking into consideration multiple debts.

Debt consolidation reduces your overall debt, requires you to repay less every month over a longer period of time and you don’t have your credit history get adversely affected. Debt consolidation is not bankruptcy and you are not settling your loans with lenders by discounting the principal loan amount. You are taking a smart way of getting out of your debt without affecting your life, financial health or credit score.

When debts pile up and they become unmanageable, the only pragmatic choice is to opt for debt consolidation. 

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