How Can Debt Consolidation Benefit Me?

What is debt consolidation?

If you have numerous credit card debts at high rates, plus auto loans, retail loans, and etc..., it maybe better off to consolidate all debt into one account - if you own your primary residence.

How does it benefit me?

There are numerous benefits. Most important being savings on the interests. If your current debt is $80,000 at avg of 15% (most credit cards charges higher,the total interest will be $12,000 a year. If the debt is consolidated at 9%, it is an interest saving of $4800 a year for you.

The other benefit is easiness to manage. By having more than one credit cards and loans with different due dates and amount, one is easy to miss the payment. By consolidating all loans into one account, it is easier for one to manage.

One benefit that most people miss is the credit history. If one has credit cards and loans that are constantly at high balance, it has negative effects the credit score. This means, if the maximum limit is $9000, and one usually use all limit up $9000, or sometimes higher, it may dramatically decrease your credit score. By consolidating the debts into one mortgage using equity of the home, it may well save your credit score in a big number.

Next Step? Call us at 604-603-6189 or Email us: cchien@mortgagegrp.com