Debt is a prevalent situation for many Canadians, and seems to be a growing phenomenon. Although being in debt can seem like a hopeless situation that seems almost impossible to get out of, there are ways to counter this problem. If you are in debt and have seemingly countless outstanding loans to pay off, there is hope – especially if you own your own home.
One of the ways in which you can crawl out of debt is through debt consolidation Oakville. Consolidating your debt will allow you to abolish all of your numerous loans, and roll them all into one manageable monthly payment. With the right team of experts on your side, you’ll find it much easier to settle your debt in this manner rather than keeping all your high-interest debt scattered.
How Debt Consolidation Can Help Get You Out of Debt
Debt consolidation essentially involves taking out a secured loan in order to pay off all your numerous outstanding loans. The reasons for choosing this type of plan are numerous. First of all, instead of having to keep track of various loans to pay off every month, you’ll only have to worry about one single loan payment. This in and of itself is a huge advantage.
Another great benefit to consolidating your debt is that you will be taking out one loan that will have a much lower interest rate attached to it since it secured by the equity in your home. Typically, Canadians have many loans that charge them exorbitant interest rates that make it that much more difficult to pay off. Credit card debt, in particular, is one of those types of debt that charges sky-high interest rates, upwards of 30%! By eliminating that debt completely, imagine the money you’ll save without having to pay so much money towards interest instead of principle!
By taking part in a debt consolidation plan in Ontario, you will essentially be able to pay your loan off faster since a larger portion of your monthly payment is going towards principle rather than interest. Paying your debt off faster will get you on the path of financial freedom much quicker. It can help you with cash flow, as the amount to pay each month is usually much lower than all your current debt payments combined. However, if you continue to pay the same amount each month towards the new loan, you can be debt free faster.
When you are ready to take control over your debt, get in touch with a professional like Lee Anne Taylor at Home Loans Ontario and get yourself onto the path of financial freedom. She will look at your current financial situation and help you determine the best loan for your need – a secured home loan; second mortgage or equity line of credit. Call Lee Anne today at(905) 336-8948 for a free consultation and to get on the path to becoming debt free sooner!