Consolidating Debt

Debt is a part of everyday life in today’s society.  And for many, it can become an immense cause for stress and worry.  Making minimum payments on your credit card never seems to get it any closer to being paid off.  And stores and banks are continually offering you more and more debt.

Many take on debt thinking they will be able to pay it all off soon, only to realize the payments get too high and they can’t keep up.  That’s where we can help.

If you own your home, we can use a mortgage (or Home Equity Loan) to pay off debts; any debts like credit cards, tax arrears, collections, anything you want.

By consolidating your debts into a mortgage (or equity loan etc), we can usually save you a lot of money, with 1 low monthly payment!  We have 2 ways to do this…

1. We can lower your interest rate
Often credit cards and store credit have interest rates around 19% or more.  When we combine them into a mortgage, we can dramatically reduce the interest rate you are paying from a credit card rate of 19%, to a mortgage rate. This alone can save you a lot of money.

2. We can lower your monthly payment
Because mortgages are usually amortized over 25 years, they have a much lower repayment amount than other forms of debt like car loans.  Therefore, we can take the same amount of debt, and reduce the monthly repayment required.  Thus increasing how much cash you have to use each month.

For Example:

Current Situation 
    New Situation with a Debt Consolidation
Mortgage
($250,000 @ 6%) 		$1,600 
New Mortgage
($335,000 @ 6%)
$2,145
Car Loan
($20,000)
$385
   
Credit Cards
($40,000)		 $1,200
   
Line of Credit
($25,000)		 $250    
 Total   
$3,435  Total $2,145


In this example, save $1,290 per month!!!

There is also great convenience in having everything consolidated into one payment per month rather than several.  It becomes a lot easier to track and manage.

Consolidating your debts is also a great way to improve your credit score.  Your payments are easier to manage, and your credit cards have a lower balance. Maxed out credit cards can certainly reduce your score and make it harder for future applications.

Even if your credit score is already low, you still have options.  For those who don’t qualify for a standard mortgage, we have 2nd mortgages available also.  In this case, we get a separate mortgage just to pay off your debts and leave the current 1st mortgage as is.  2nd mortgages often have higher rates and fees, however they have the same effect of usually lowering the interest rates and lowering your payments each month so you have more cash left over.

By lowering your monthly payments you can get back on track and achieve your financial goals, without the headache of late payments and maxed out credit cards.

Sometimes all you need is a second chance.  And if you don’t qualify for the best market rates now, then we give you the tools that you need to get back to the best rates as soon as possible.  We want to work with you.  Life happens, but if you own your own home, then we can help. 

Sometimes things come up in life that you weren’t expecting.  You come home and your furnace is broken.  Your car broke down on the way home from work today and you need that fixed right away.  Perhaps the last dental appointment was a big shock and junior needs braces!  You put these things on your credit card and one day you realize you are over your limit on all your credit cards.  You don't know how it happened, but it did.

You are only making the minimum payment on the cards so the balances are not going down.  If you own a home, help may be there and you just didn't realize it.  In today’s mortgage marketplace, there are hundreds of different mortgage products available.  There may be one just for you!
All it takes is a quick call and you can be on your way to a more stress free life with extra cash each month to live life the way you deserve!

Call us today at 403.284.4000.

   

Contact Us

600-602 12th Avenue SW
Calgary, AB
T2R 1J3 

Toll Free 877.284.4009
P 403.284.4000
F 403.284.4010

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it