For many homeowners, there may come a point when consolidating debt and simplifying their finances makes more sense. You undoubtedly have outstanding debts like a car payment, credit card debt, retail cards, and possibly personal loans, just like the rest of us. The aggregate monthly cost of all of these obligations can make it impossible to get ahead, because all you're doing is paying interest or “minimum balances” on the loans. This isn't the best circumstance, and it could be harmful to your financial well-being. The good news is that there are debt consolidation mortgages available.
Using the equity in your house to pay off all of your debts is a smart move. Refinancing, or combining all of your debts and adding them to your mortgage, provides various advantages and peace of mind. For starters, the overall interest rate and amount you pay is lower. Credit card interest rates can range from ten percent to twenty-nine percent! This rate is compounded monthly rather than semi-annually, as is the case with a mortgage.
The monthly payment is perhaps the most significant benefit. You can take advantage of a low monthly payment by consolidating your debts into your mortgage. This can offer you the breathing room you need to make a plan and get serious about paying off your debt. You can save thousands of dollars in interest alone each year by combining your debts. By avoiding missing any payments, you will keep your credit rating in good shape and avoid late fees and penalties.
Our mortgage experts can assist you in locating the best debt consolidation loan for your financial situation. Unlike banks, we are not concerned with your existing income, debt load, or credit score. We can assist you in finding a better financial solution, whether you are receiving calls from collection agencies threatening legal action, considering a consumer proposal, or even filing for bankruptcy.
A debt consolidation mortgage allows you to use the equity in your house to pay off debts and improve your credit without having to touch the first mortgage. A second mortgage is what this is referred to as. Furthermore, without a consumer proposal or bankruptcy, Mortgage Brokers Parramatta's debt reduction services can actually cut the amount you repay to creditors by up to 50%.
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