Is your debt good or bad? If you have a lot of debts to pay, it will definitely cause you a lot of distress and affect your finances. Thus it will make more sense to merge them in order to manage them better. One such way of consolidating your debts is by refinancing the equity in your mortgage to lower your credit card loan. Therefore, if you have enough equity on your property, you can pay off other debts like credit cards and service one loan at a cheaper interest rate. This is the choice most Canadians are making.
These are the benefits you are bound to enjoy after making this decision;
1. Increased savings and cash flow; You will be able to save most of the money that went into paying high interest rates and consequently you will have more money at your disposal for other uses.
2. Pay a lower interest rate on your credit card after consolidating the high interest rates.
3. Enjoy peace of mind knowing that your financial state is more stable than before.
It is always wise to weigh and analyze if the decision you are going to take will work for or against the well-being of your finances. If you want to discuss about how you can refinance your debt, contact us and find out which options are available to you.