Debt consolidation is the process of taking out an equity home mortgage loan that allows you to consolidate several individual debts or refinance a first and/or second home mortgage loan into a single consolidated payment at a single interest rate.
As an example, say you have $75,000 outstanding on three credit cards at an interest rate of 19.99%, with the following amounts outstanding:
Card #1: $25,000
Card #2: $15,000
Card #3: $35,000
The total amount of debt you owe on the three cards is $75,000. A typical monthly payment (based on three percent of the outstanding balance at an interest rate of 19.99%) would be $2,250.
Now imagine the above three debts are consolidated into a single equity home mortgage loan for the same amount, except the biggest difference is the interest rate that you pay. By consolidating the debts into a single equity home mortgage loan, the same debt could be serviced with a monthly payment of $479.41 (assuming a 5.99% fixed interest rate home mortgage loan). That’s a monthly savings of almost $1,800!.
Now that you have all that “extra” money in hand by obtaining an equity home mortgage loan, to reduce your debt even quicker, pay the savings back to the equity home mortgage loan. This will reduce your debt quicker and potentially pay off the whole amount in three years. That’s the power of a debt consolidation equity home mortgage loan.
LOWER YOUR BILL PAYMENTS BY UP TO 75%! Or put another way, INCREASE YOUR CASH FLOW BY UP 75%
The Advantages of Debt Consolidation Home Equity Loan
As you can see above there are some serious advantages to refinancing to consolidate your debts.
- Decrease interest rates save you money, which in turn can help you eliminate your credit card debt quicker
- Lower total monthly payments
- Replace multiple payments with a single monthly payment
- Easier to manage your household budgets with a single payment
What Can Canadalend.com Do for You?
At Canadalend.com, we have access to a large pool of mortgage providers and private lenders who provide a variety of mortgage products catering for clients with past credit issues and even bankruptcy.
If you fall into one of these groups:
- Overwhelmed by debts?
- Collectors always calling?
- Bills accumulating day by day?
- Mortgage payments behind?
- Property taxes behind?
- Current interest rate too high?
If you answered “yes” to any of the above questions, Canadalend.com can help you on the path to financial freedom. We can help you to refinance to consolidate your debt load into one monthly payment and one low interest rate that is both affordable and will provide you with excess cash flow!
If you have any type of equity available, Canadalend.com can obtain a financial solution that allows you to pay off of your creditors and then deal with a single creditor who would provide a manageable monthly payment substantially lower than what you are presently paying.
Debt Consolidation – Practical Tool for Refinancing Mortgages
The Canadalend.com team is dedicated to finding the most practical debt consolidation solution for you to fit your specific needs, your budget, and your lifestyle. So if you are feeling overwhelmed by the number of bills you are paying every month, you can benefit by consolidating your debts. Debt consolidation will basically reduce or shrink your multiple bill payments to just one. This will help you be in a much better position to manage, as well as reduce, your debt in a more effective way over a period of time.
Consolidating Your Debts Can Benefit You in Two Main Ways:
In today’s hard-pressed times, it is nearly impossible to find someone who does not have more than one loan to pay off. When you are struggling with multiple forms of debt, refinancing is not only essential, but can prove to be beneficial in such situations, as well. This is why debt consolidation makes for one of the best refinancing solution for you, especially when you are tied up with multiple debts, as it helps you to pay off several existing loans with the help of a single new loan scheme.
Lower Monthly Payments – By being able to make lower monthly payments than your current loans, you will be able to enjoy more spending power, as well as pay off your loans much more quickly.
Ease of Tracking One Bill – As discussed above, debt consolidation helps in simplifying your debt payments to just one bill. This solution will therefore decrease your financial stress and allow you to manage your payments in a much better manner.
Resolving Multiple Debt Issues with Debt Consolidation
Our refinancing plans can also help you to save money, especially when you are paying off a home loan at a high rate of interest as we can assist you in finding mortgage interest rates that are lower than your current loan. In this way, you can not only reduce your monthly payments, but also use the extra cash for meeting other expenses. Here are some of the appropriate ways through which you can consolidate your debts to suit your specific needs in an effective manner:
Consolidating First and Second Mortgages
A first mortgage is a term that is used for referring to the primary home loan taken up by the homeowner. On the other hand, a second mortgage is a comparatively smaller amount of loan which cannot be more than 80% of the existing home equity and is taken up in addition to the first mortgage. For instance, if you have a home which is worth $400,000 and your first mortgage amounts to $250,000, then you have a home equity equaling $150,000 of which you may secure a second mortgage of $120,000.
Therefore, a home equity line of credit (HELOC), which is a product for a second mortgage, can help you in consolidating all your previous debts into one single loan, thereby providing you with a marked reduction in your monthly payments, increased cash flow, and, above all, a comparatively lower rate of interest than most credit card companies can offer.
Private Mortgages for Debt Consolidation
Sometimes you need immediate refinancing solutions to your debts and it becomes impossible to find a bank or an institutional lender to answer to your urgent needs. Whether you are unable to wait for a bank’s long approval process or cannot apply for a regular loan, you can still opt for private mortgages. There are a large number of reliable lenders who have many flexible refinancing solutions for your specific needs that we deal with and who we can help you to get in touch with.
At Canadalend.com, we understand that falling behind monthly payments can be costly, as well as stressful, in so many ways. This is why we are here to help you sort out all your mortgage and tax arrears in a highly professional way. Get in touch with us right away and our team will provide you with the best possible refinancing assistance possible!