When we take stock of our finances, it can be easy for our debts to overwhelm us. Those living with the burden of debt often experience fear, anger, frustration and even depression. Entire families suffer from the effects of heavy debt as worry and resentment cause loved ones to withdraw from each other. These problems are real. Fortunately there are options that make getting out of debt a real possibility. Consolidation of your debt in Waterloo allows debtors to pay off their consumer debt with single affordable monthly payments. Access Mortgage and our professional team can assist you with debt consolidation strategies that can put you on the path of debt relief.
Some strategies for debt consolidation at Access Mortgage:
When it comes to debt consolidation, Canada is seeing increasing numbers of its residents looking for a way to reduce the amount of their monthly debt payments. Debt consolidation loans involve combining several high-interest loans or debts into a single debt with a lower interest rate. A debt consolidation program works to simplify life for the consumer by replacing a number of bills with one lower monthly payment. For example, a consumer with four credit card bills can get a debt consolidation loan to pay off the credit cards, resulting in one payment, rather than four.
The reason that consolidating your debt is so important is because credit scoring agency rules have changed. In the past if you had high balances but paid your minimum monthly payments, your credit score would have been great. But, now, if you have a balance that is within approximately 80% of the credit limit, your credit score can be greatly affected. By doing a debt consolidation, it does not damage your credit. Rather, it improves your credit and will enable you to leverage more competitive interest rates in the market.
Mortgage refinancing is the process of replacing your mortgage or mortgages on your property with a new mortgage, generally with different terms than the original mortgage. Some confuse mortgage refinancing with a second mortgage, but they are not the same. A second mortgage is in addition to your first mortgage, and does not replace it. Mortgage refinancing will provide new money to the borrower, and used to pay off the original mortgage, usually with better mortgage terms.
This kind of loan is usually a fixed-rate loan secured as a second or third mortgage against the property. Home equity loans or home equity lines of credit are useful when you need money for expenses, consolidate debt, finance a new home or complete a renovation project. It could also come in handy if you need funds to pay taxes, property tax bills or mortgage arrears.
For more information about these three strategies for debt consolidation in Waterloo or about any of our other services at Access Mortgage, please feel free to continue browsing through our website. We can be reached at 1-844-397-3780 or by filling out our contact form.