Reduce Your Debt Stress
Stress due to high-interest debt on credit cards, auto loans, or other consumer loans have higher interest rates and can be difficult to pay off, but if you’re a homeowner, you have additional options to help you manage your debt, including a debt consolidation mortgage and home equity loan or line of credit. Why pay higher interest rates to many institutions, simplify your finances, save money and start realizing your financial goals with a debt consolidation loan at Home Loans Alberta. Our mortgage brokers are experts at finding ways to ease your financial stress.
What is a Consolidation Loan?
A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once. You are then left with only one outstanding loan — to the financial institution. In addition to streamlining your debts into a single payment, a debt consolidation loan may also offer you an interest rate that is lower than that charged by your creditors; saving you money in interest charges. This option can be especially attractive if you have outstanding debts at a relatively high rate of interest (for example, those charged on some retail store cards or credit cards). We can arrange for a loan equal to the amount of your total outstanding debts that are currently due. In most cases, we will settle all of the debts for you, and in return, the only monthly payment you will have to make will be to them.
Use Your Equity To Help
If you have a number of debts and built enough equity in your home you may be eligible to consolidate your debt with your mortgage. There are many reasons this is a good solution. This option allows you to simplify your finances by only having one monthly payment rather than many and also pay off higher interest debts so that you are left with one loan at a lower interest rate. Mortgage interest rates are much lower than other interest rates and your mortgage can be amortized (paid) over 25 years which also means one lower payment.
This option may be suitable for debts such as those relating to credit cards, public utilities, or other consumer loans. However, not all debts can be combined into a consolidation loan — a mortgage cannot be included, for example.
In order to qualify for a consolidation loan, a consumer usually needs to have an acceptable credit rating and sufficient income to demonstrate that they will be able to manage the loan (that is to say, to demonstrate they will be able to make the monthly consolidation payment, in addition to paying for their regular monthly bills and expenses).