You can apply for an unsecured or secured consolidation loan (for example obtain a second mortgage to pay off credit card debt).When an individual owes debt to a lot of different lenders or accounts it is difficult to keep on top of the monthly payments.This means that if something should come up unexpectedly there is still a reliance on credit to cover the expense.
For an exact penalty calculation, contact your lender directly.
Of the 10% of Canadians who refinanced their mortgages last year, 62% cited debt consolidation or repayment as the main reason for their refinance.
In Canada consolidation loans are a way to combine several smaller loans into one single monthly payment.
The concept is simple; getting the loan is the hard part.
It’s a long article—but if you stick with me, you’ll know more about this highly effective method for reducing debt than 99% of Canadians.
Debt, as you know, is a struggle against interest payments. And once your debt rises above ,000, it becomes very hard to pay down the interest.Debt consolidation is helpful to people who can’t make their full monthly payments on time.With this option, you only make one reduced payment per month.In Canada, this is determined by taking 80% of your home’s value and subtracting any existing mortgage balance.As a refinance for debt consolidation requires you to terminate your existing contract with your lender and enter into a new mortgage, you will have to pay a mortgage break penalty.This is determined through a number of factors including your original mortgage contract date and current mortgage balance and rate.