Use Home Equity to Reduce Credit Card Debt
Think about this… Canadian consumer debt hit the all-time high. Canadian households are carrying a debt to disposable income load of 167%. In other words, they owe $1.67 for every dollar that they have available to spend.
This is one of the reasons growing number of homeowners are tapping into home equity and refinancing existing mortgages to consolidate debt like credit card and loans
Let me explain the benefits of taking out cash from your home by refinancing mortgage to consolidate your debt!
Lot of people are talking about this, but let me give you a few reasons, why you should refinance and get cash out. Let’s talk about credit card debt. Credit card debt is choking Canadians…
Are you one of them?
The number one reason why people tap into their home equity is to take cash out to pay off credit card debt.
People are sick and tired of paying 12, 15, 20 or 29 percent on their credit cards. Most people don’t even know what interest rate they are paying on their credit cards because either they don’t want to know or they don’t care or are hopeless.
They simply say, who cares… I will just pay it off somehow.
But what happens is… the average credit card on which you just pay the minimum payment is going to take you 25+ years to pay it off!
How does cash out refinance work?
Normally, you can borrow up to 80% of your home appraised value and in some cases up to 90% of your home value.
For example, let’s say that your home value is $350,000 dollars and your mortgage is $200,000 dollars. You can pull out up to $80,000 dollars by refinancing your existing mortgage at today’s lowest rate on the market and pay off your credit card debt, loans and save hundreds of your hard-earned dollars each, and every month.
Just click here and read what my clients are saying about my superb mortgage refinancing debt consolidation services.
Cash out refinancing to pay off debt, renovate property, pay off back taxes makes sense!
There are so many reasons people are tapping into their home equity. What sounds better? Pay 20+ interest rate on your credit card or say 3% and slash your payments by 50% or more…!!!
Of course, the interest rate depends how much money you need, how good your credit is and how much home equity you have.
But, it really doesn’t matter that much… if you can save 10%, 20% or more and lower your payments by 50% or more than it is worthwhile to consolidate your bills today before it’s too late!!!