Drowning in Debt? Consider a debt consolidation loan - Mortgage Guys
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Drowning in Debt? Consider a debt consolidation loan

Consolidating debt

The present day financial world is significantly different from the past when to consolidate debts related to loans and credit cards; it was necessary to obtain a second mortgage. In fact, this was your only solution, and your second mortgage rates could be as high as 24 percent!

The financial options today are more flexible and give greater consideration to personal circumstances. You have the option of refinancing your existing mortgage, with the goal to incorporate current debts, thereby removing the present debt burden without resorting to taking out a second mortgage. You gain a significant advantage today, by refinancing at a 5-year rate of 2.44 percent interest.

Personal debt circumstances

If you are in a situation in which maintaining regular monthly payments in respect of credit debt has become difficult, then debt consolidation could be a solution.  In general, debt is contagious, and once you are in the position of playing “catch-up” with your repayments, the imposed high-interest rates and total monthly payments needed become increasingly more challenging. Many homeowners are faced with the monthly problem of needing to pay off a line of credit, their credit card(s) and car loan. At the same time, they still need to meet the cost of their lifestyles and their minimum mortgage payment.

Payments reduced by debt consolidation

There are various financial advantages associated with debt consolidation that not only makes your debt repayments more manageable, but it also reduces the amount of interest you would have been called upon to pay if you had not opted for the consolidation of your debt. This is achieved by securing an improved interest rate on your mortgage. This is an option that is always worth considering should the mortgage interest rates have decreased to a large degree since you obtained your original mortgage.

Although there are fees linked with a debt consolidation mortgage, they can reasonably be recovered relatively quickly, by way of you paying less interest for your consolidated debt. By consolidating your existing debts, you gain a lower monthly payment, and in certain instances, a lender will agree to discharge the appraisal and even incurred legal fees.

They are benefits that could influence your total savings amount and even to a greater extent when you consider that you are not being required to pay those costs directly.

At Mortgage Guys, we’ve helped many individuals just like you take charge of their finances and relieve the pressure of credit card debt. Our expert consultants will work with you to find the best solution to meet all your financial needs.