Many of us have had life experiences in which we have accumulated debt. Maybe it was for a wedding, maturity leave, a sick relative, a slow patch in business, a lost job or job change, and sometimes all of these can even happen all at once! It can feel like a crushing weight on your life and something that you can’t get out of when you have so many payments to make, including a mortgage, car loan, credit cards and lines of credit.
6 out of 10 Canadians are living paycheque to paycheque, so the feeling of being “stretched” is quite common. If you own a home, you may have an opportunity to completely change your situation for the better with a simple restructure of your finances.
Something to consider:
Mortgage of $400,000.00 2.99% for $1,895.00/month,
$25,000 line of credit at 3.2% for $67.00/month (interest only),
$30,000 Car loan at 0% for $600/month,
$20,000 Credit card at 19% for $400/month,
$15,000 Credit card at 11% for $300/month,
$30,000 Student loan for $700/month. The Total Monthly Payments Combined are at $ 3,962.00.
Why not consolidate all of these debts into a low rate mortgage? The New Monthly Mortgage Payment would be $2,466.00! THAT’S SAVINGS OF $1,496.00 EACH MONTH!!!
*this is the net benefit after mortgage penalty and new closing costs and is subject to final approval by a lender*.
You might be thinking, “Why would I consolidate a loan that has a 0.00% interest rate?”.
It would be to improve your cash flow so that you can save money every month and cancel the cycle of getting into higher interest rate debt.
If you’re saving $1,496.00 per month, you can put money aside AND pay down your one debt faster (the mortgage), therefore creating a more flexible budget moving forward.
Do you, or someone you care about, want to see if this is a good option? Our service is free! It’s as easy as calling 604-802-3983 or emailing us firstname.lastname@example.org so we can evaluate your options, which would involve a brief conversation and some documentation to confirm that you qualify for a restructure of your finances.
Angela Calla, AMP