Can Debt Consolidation be a Remedy that your Family Benefits from?
We are just coming out from the pandemic and your Family’s Heath will be top of mind for you. Many families are also dealing with their Financial Health and Debt Consolidation as a possible method to manage their debt.
There’s no way around it, 2023 is debt-heavy. RBC economist Nathan Jensen goes as far as stating that, “the household debt-service ratio will likely hit record levels this year”. Yikes. So, how do you weather the financial storm? We suggest looking to a traditional and commonly used solution: Debt Consolidation.
Debt consolidation – How it works.
Do you have multiple credit cards and loans? If you do, each month you likely deal with many different payments coming out of your account. When you consolidate your debt, you take the total of all of the money that you owe and lump it together into one debt product. Sure, it makes your bank statement easier to read, but how does that save you money?
Because of high interest rates on many credit products, like credit cards, unsecured lines of credit and loans, you are charged higher payments. This is done because these types of debt products are riskier than others. When you transfer that debt to a product that is secured, say to a house, you are given a lower interest rate, allowing you to spend more money on the actual debt and less money on interest.
Depending on the term of your new loan you agree to, you can also lower monthly payments. Should you decide to shorten the amount of time you’d like to take to pay off the loan, you can adjust your payments at the time of a term negotiation.
Debt Consolidation – How to do it.
The first thing we recommend is to book an appointment with a mortgage expert. That way you will have access to someone who has a wealth of knowledge that they can help you with. With knowledge on your side, the next step is to gather all your monthly statements. This will allow the Mortgage Broker to calculate what your current debt ratio is as well as how much you would need to borrow to pay out all your current balances.
Once you are through the application process, your mortgage broker will also help you to build a strategy to continue your journey out of debt and to Financial Health. That way, once the bulk of your debt has been paid for, you will have a clear view of how to continue with your financial goals.
Buckley Mortgage Broker can help you with Debt Consolidation
Our team offers decades of experience in assisting clients with financial needs. We provide creative solutions to debt and financing problems with access to more than 70 lenders. Ready to take control of your finances? Give us a call or send us an email today.
