Debt Consolidation Alberta & Saskatchewan

Home Equity Loans - Payoff High Interest Borrowing

Relax with a home equity loan to repay high interest credit card bills

Your home is probably your biggest asset, and paying regular mortgage payments, along with appreciating home values, can really help you build equity. 

When necessary, you can use the equity in your home to pay off high interest debts, including store cards, credit cards, car loans and other unsecured debt.

Many people with unsecured debts have trouble making all their payments or find they cannot pay more than the minimum each month.  Paying the minimums makes it difficult to get out of debt, especially when interest rates can run as high as 29% on some store cards.

One Monthly Payment

Debt consolidation in Saskatchewan. Couple gets lower interest paymentsThere are times when it makes good financial sense to borrow money from the equity you have built up in your home. 

For one, you will save on interest since secured debt rates are much lower than the rates for unsecured debts.  This can add up to thousands of dollars per year in interest that you can save by borrowing at secured, low rates.

If your debt is mainly on credit cards, store cards and other unsecured loans, that can really hurt your credit rating.  Consolidating all your debts into your mortgage or line of credit does not have the same detrimental effect on your credit score.

Another plus is that you only have to make one payment a month.  This makes it less likely that some payments will slip through the cracks or be forgotten.  It also helps when you do your monthly budget planning. 

Monthly Payments

debt consolidation in Alberta, Canada. This family has lower payments and less interest to pay.Lower Monthly Payments with Debt Consolidation

When you consolidate your debts using your home equity, the one monthly payment is generally less than the sum of all the payments you currently make. 

This means better cash flow each month. 

With the savings you make on interest and better cash flow, you can direct more money towards paying back your mortgage or line of credit.

Learn more about Refinancing
Learn more about a Home Equity Line of Credit
Learn more about a Second Mortgage