Vancouver Mortgage Broker | Langley Mortgage Broker
Debt Consolidation services in Vancouver are a very common need. Now, more than ever, it seems many home owners have accumulated significant debt and are looking to consolidate. It isn’t that people have just been fast and loose with their credit cards; for many the global pandemic has shuttered their business or they’ve lost their job. With consumer debts having significantly higher interest carrying costs, this can be a debt spiral that is very hard to get out of.
You debt consolidation can take many forms: mortgage, line of credit, or even a second mortgage. The fact is any of these options which is a secured form of debt consolidation, but much less expensive than an unsecured debt consolidation. The whole point of debt consolidation is for those people that find their current debts have become unmanageable due to the higher rates. If you are the type of person that often pays large chunks against your debt, then debt consolidation might not be for you.
However, if you have found that your payments have been constantly rising, using one debt to pay another, resulting in even higher payments, and you never seem to be able to “get ahead of it,” then debt consolidation is likely your best choice.
A couple of common questions:
“Will I pay more interest if I utilize a debt consolidation?”
No, you will not. When you go from an unsecured debt to a secured debt, such as a debt consolidation mortgage, you will likely have a much lower rate. Secured debt is always cheaper than unsecured debt.
“Will my payments be higher if a utilize a debt consolidation?”
No, in most instances, when you utilize a debt consolidation, you are able to amortize (that is, spread out) your payments over a much longer period of time and at much lower rates. If you owed $10,000 on a credit card, that would equate to roughly $38 a month compared to $300 if left on the credit card. While it may take longer for the debt to fully go away, you can use that added cash flow to attack the higher rate debts first, then pay down the cheaper debt consolidation mortgage that we’ve set up.
“Why do some people need a debt consolidation?”
Debt consolidation can be needed for many reasons: renovations done on a home, paying for college education, job loss, divorce, or many other reasons. It’s not always about mismanagement. Sometimes it can simply be a way of holding debts in a more cashflow efficient manner.
At City Wide Mortgage Services, we have been providing debt consolidation services since 1995. We work with many banks and credit unions that offer debt consolidation as well as many private individuals, investors, and Mortgage Investment Corporations that also offer debt consolidation loans. If you are looking for a debt consolidation loan to pay down high rate credit cards, provide down payment for a new property, or just reduce your monthly debt payments, Rowan Smith Mortgage Broker can help.