Debt Relief 101: Refinance Your Mortgage to Consolidate Debt

Image When your debt begins to climb at a rate that seems to be spiraling out of control, or if you are just tired of shelling out money without seeing totals decrease, it might be time to consider a different approach. Making minimum monthly payments is not actually going to get you out of debt – and realizing this, many Canadians have chosen to refinance their mortgages as a way to consolidate debt – but is this the right option for you?

There are several reasons why refinancing your mortgage to consolidate debt can be a smart option. Firstly, because you are consolidating you are getting rid of that laundry list of monthly payments and consolidating them into one, tidy payment. This can make keeping track of payments far easier – and less stressful. Secondly, you can save huge on interest. If you are carrying a number of different credit products…

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Debt Consolidation in Canada

All of our lives contain at least a few shocks, twists and surprises. Even though none of these events are anything like what we see on TV, seeing our finances being bundled up into a huge mess is something quite common in today’s world. And the worst part about this situation is that people see their entire financial stability falling apart and do very little to try and stop it. It’s like they’ve given up before the battle even ends. These situations often arise because of unforeseen expenses or loss of a job. What other options does a person have when facing such a situation you ask? He/she can go in for a debt consolidation Canada of course. These loans come in various shapes and sizes and can even function differently depending on the requirements of the person taking the loan.

The primary objective obviously is to consolidate a person’s debt so that it is easier to repay. There are debt specialists who deal with all your creditors on your behalf and negotiate excellent deals for you. They will be able to get you reductions in your total debt outstanding and offer a loan for the remaining amount to you at a much lower rate of interest. This is something recommended for people who find themselves falling deeper and deeper into debt. You shouldn’t wait too long as it will be very difficult to get you back on the right track once you are bankrupt. The biggest advantage when you go in for debt consolidation is that all the parties involved in the transaction are satisfied. The creditors receive their money, you save on interest and principal repayments and the consolidation company collects interest from you on the money they have paid.

Borrowers can even use this situation to restructure their consolidation loans in such a way that they can repay them every month without fail. As their total debt reduces, their credit history will improve as well. So you could say that debt consolidation is the perfect option for people with a lot of debt who are looking for another chance at life.

One thing you should be sure not to do though is start using your credit cards again once their debts have been settled. It is recommended that you dispose of all your credit cards as soon as you pay them off so as not to entice yourself to start using them again. Credit is nothing but an addiction and while it may be very hard to get rid of it, you will have to unless you want to end up with a debt consolidation loan and credit card debt at the same time. Now that would be a really tricky situation for you to get out of.

Debt Consolidation – 3 Tips to Success

Debt Free By 2015; The Challenge

This blog is dedicated to motivating on becoming completely debt free by 2015. I want to help you win! because I know how hard it is to get started, I have done some homework (for myself as well) and found these five ways to consolidate your debt.

borrower-debtfiguring out who to trust when it comes to your fragile finances is tough. There are a ton of companies out there who will eat you alive if you don’t do the proper homework first. It is so important that you understand what your options are and exactly how they work before decide which get-out-of-debt method is right for you.

First off…What is debt consolidation? 

The term “consolidate” means to group several things together into one. Now don’t be fooled, it is not required that you hire some big wig company to squeeze all your debt together for you in a pretty package. This…

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