A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way
Use Your Home Equity to Reduce Credit Card Debt
Home equity is the portion of your home that you actually own or the portion that you’ve paid off. It’s likely that your home has equity if you’ve own your home for several years. If you’ve taken a mortgage to purchase a home, then you don’t own your house yet, you’re still in the process of paying it off.
Why pay high interest rates on your bank’s credit card when you can add that debt to your mortgage and pay a much lower interest rate?
When your home has equity, you can take out a loan. You can use this loan to pay off your high interest credit card debt. Canadians are taking advantage of refinancing some of the equity in their mortgage to reduce their credit card debt. One important part of debt consolidation strategy is knowing “good debt” from “bad debt.” A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way.
1. Consolidate high interest rate credit cards to one lower rate.
2. Save money and increase cash flow.
3. Reduce stress knowing that your financial situation is now manageable.
Advantages of Using Home Equity to Pay off Credit Card Debt
1. Interest rates are lower than most other types of loans
2. Payment plans are flexible and can be customized to fit your needs
3. You don’t need to keep track of all your different credit card payments
If you’d like to have a conversation about refinancing your credit card debt, give us a call today to review your options. Learn more about debt consolidation. It’s time to beat the banks!