Consolidate Debt

Consolidating Debt

How taking out new loan can help you to pay off debt

The process of consolidating debt aims to help individuals to pay off their consumer debts by taking out a new loan. This combines multiple debts into a singular pool of debt, which typically offers better pay-off terms that the individual received by having multiple debt accounts.

Options

The right mortgage solution can help you to pay off those high-interest credit cards and improve your monthly cash flow. Debt consolidation solutions also let you pay off your mortgage faster, particularly if you choose to move an existing mortgage to a lower-cost lender.

Example:

Current situation Balance Payment
Mortgage (2.99%) 350,000 1,654
Car loan 25000 800
Credit cards/line of credit 20,000 600
Penalty to break mortgage 5,000 0
TOTAL 400,000 3,054

 

Current situation Balance Payment
Mortgage (2.99%) 400,000 1,912
Car loan Paid to 0
Credit cards/line of credit Paid to 0
Penalty to break mortgage Paid 0
TOTAL 400,000 1,912

YOU SAVE: $1,142/m

This cash flow can be used for immediate needs, or, can be re-applied to the mortgage as pre-payments, to be mortgage free sooner.

How The Mortgage Station Can Help

Credit cards and other sources of debt come with higher interest rates and the burden of managing multiple payments each month. Our team can create a plan that will help you to reduce your debt and put yourself in a better financial situation through consolidation.

Speak to an agent today! 1.877.512.0007