Consolidating debt into mortgage canada
This means that if something should come up unexpectedly there is still a reliance on credit to cover the expense.Almost all Canadians will take on some form of debt in their lives, and as an Albertan, you're likely carrying more than your neighbours in other provinces.Your situation may seem desperate, but don't despair: debt consolidation may help you get back on track. Debt consolidation involves borrowing money from one lower-interest lender to pay off your debts with other higher-interest lenders.By doing this, you will clear up those higher-interest debts and be left with one, easy-to-track, lower-interest loan.When determining if you qualify for a debt consolidation the bank will look at your credit score, your debt service ratio and your employment status.
Debt consolidation allows people who are struggling with their finances to group their obligations into a single payment.
With a line of credit, you have the flexibility to repay as much as you want or as little as interest only every month.
When an individual owes debt to a lot of different lenders or accounts it is difficult to keep on top of the monthly payments.
Do I continue to keep paying it off monthly or should I add this money to our mortgage just to get rid of it.
Right now we have a variable mortgage at 2.25 %interest.
Well, it depends on whether you’re doing it to reduce your interest costs, or to buy room on your credit card so you can keep shopping!