Consolidating debt into mortgage canada
As you can see below, there are many different types of debt consolidation options to choose from in Canada.We have included a brief overview of each option, but if you want to know how each of these options apply to your individual situation, give us a call at 403-891-9973.This is when someone borrows money and then uses that money to pay off other debts.It might make sense to consolidate high interest debts into one monthly payment with a lower interest rate.
But the person at the bank also suggested an Equity Line of Credit, amalgamating our car loans while saving on monthly interest etc, because we were richer than we thought.
Right now we have a variable mortgage at 2.25 %interest.
I am now 50 years of age, and really want to get our mortgage paid off. No one is richer than they think, but it sure is a great way to convince people to borrow more money, isn’t it?
Depending on how much equity you have in your home, you might be able to borrow against it and use the cash that they get to pay off debt.
Using home equity to consolidate debts results in either increasing your mortgage to deal with your debts, or taking out a second mortgage at a higher interest rate, which can make it harder for you to get out of debt in the long run.
A line of credit or a bank overdraft is when your bank card (debit card) is turned into a credit card so you can spend money you don’t have, up to a predetermined limit.