Having debts with high interests can be immensely stressful.
Managing multiple debts on its own can be difficult.
Being a homeowner means you are lucky and part of the very few people that have the option and ability to minimize debt and create financial certainty by reducing your monthly mortgage payments.
However, the real pain arises when your quality of life begins to deteriorate.
Your motivation must be in the right place; that is creating long-term financial certainty.
Debt consolidation allows you to secure a new loan by refinancing at a lower rate to pay off multiple loans or debts to provide the convenience of servicing one loan or debt.
The process works by paying off the bulk of your high-interest loans or debts with a second mortgage or home equity line of credit.
The overall lower interest rate is the foremost benefit for consolidating your debts into a mortgage.
Without consolidating your debts, you keep paying multiple high-interest rate loans or debts that can be very expensive.
Consolidating all your debts into a mortgage will eliminate your existing loans and allow you to pay a single loan at the lowest interest rate.
i. Lower Your Monthly Payments: Once you have consolidated your loans and debts into a lower mortgage, your overall monthly payments will dramatically reduce. That is because you will end up with a single loan to repay.
ii. Lower Interest Rate: Credit cards and car loans or other loans typically have higher interest rates compared to lines of credit or home equity loans. A line of credit provides flexible repayment options. You can pay the amount of entire borrowed funds or the minimum balance. A line of credit is a revolving account that works similarly to credit cards. Credit cards are more expensive — A line of credit is cheaper.
iii. Pay-Off Collection Debts & Tax Arrears: You can also use debt consolidation as a tool to pay off your collection debts and tax arrears. Collection debts have an impact on your credit score that can take up to 7 years to fix. We suggest if you have missed payments and currently have debts in collections, you consolidate your debts into a mortgage right away to have it paid off to improve your credit score over time.
iv. Gain Access To Reusable Credit: Remember, the process of debt consolidation works by using a new loan to repay the bulk of your high-interest loans with a second mortgage or a line of credit. A line of credit gives you access to funds with a specific limit. You can use the entirety of the granted funds immediately or use the funds as little as you want. The key benefit of using a line of credit as a debt consolidation tool is that you can tap into the granted funds at any time and repay immediately or over time. The best part, you only pay interest on the funds you have used.
Smartlend.ca provides homeowners with alternative home loans and mortgages.
We help real people like YOU become financially indisputable regardless of your current situation.
Consolidating your debts into a mortgage with smartlend.ca
Step 1: Click Consolidate My Debts Into A Mortgage to get started.
Step 2: Answer Basic Questions About Your Property,
such as:
i. What is the home value
ii. Current mortgage balance
It only takes a few minutes. It will not impact your credit score.
You can email us directly at [email protected] for your debt consolidation request.
Get Approved Regardless Of Your Current Situation