We all have times when it seems there is too much month left at the end of our pay cheque. Credit cards, car loans, taxes, etc, etc. All of these add up quickly, and before we know it, we can find ourselves in a heap of trouble.
Well, there are two ways to handle this:
1. Make more money! Sounds easy right? Maybe not.
2. Make the money you have borrowed, cost less!
Number one is not really an option for most of us, at least not in the short term. Number two can be done quite easily though. Most debts, like credit cards and department store cards, are unsecured debts, making them very high risk for the lenders. This means the interest rates on these loans will be very high (some as high as 29%). Also, in general they will be amortized over a relatively short period of time, (usually 3 to 5 years) making the principal portion of your payments very high. Get a few of these going and you can see how a pay cheque can disappear very quickly.
Be smart; use the equity in your home. Pay off these high interest loans and replace them with a single low interest secured loan, amortized over 25,30 or even 40 years. In doing this you are still obligated to pay your debt, but the payments will be significantly lower, and more manageable. This will save you from late payments, bankruptcy or structured settlements, which destroy your future borrowing potential. It will also increase your credit score almost immediately as all your debt load will be cleared away. Imagine the feeling of telling credit cards companies that you don’t need any more cards. Financial freedom is only a call or application away.
Just as an insurance broker finds you the best deal on insurance, a mortgage broker finds you the best deal on mortgage.
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Sherwood Park AB Canada