Debt
Consolidation
Debt consolidation is the process of merging several debts into one single loan payment that is easy to make for the borrower. Furthermore, the interest rate is also low, which allows the borrower to pay off high-interest debt so more of their payment goes toward paying down the principal. To find out more information about debt consolidation mortgages, please speak to the expert team at Kingsdale Mortgage today.
Benefits of debt
consolidation mortgage:
1. Frees up cash flow: Because the rates and terms for a debt consolidation mortgage are much lower than most types of debts, the single mortgage payment will most likely be quite lower than the total of all the individual payments you’ve been making. This will free up your cash flow in your monthly budget so that you can place funds towards household expenses, savings, or simply paying off your mortgage faster.
2. Improves your credit score and history: Paying off high-interest consumer debt will most likely improve your debt-to-credit ratio. The ratio is a measure of how much debt you are carrying compared to the credit amount you have. This is one of the major factors that will impact your score and history. So, paying off your debt on time will get you back on track financially in the long run.
3. Helps you save money: Credit cards, including other consumer debt, have much higher rates of interest than a typical mortgage. What that means is, you pay off more interest if you can only afford to make the minimum payments.
Save money by consolidating
your debt
By consolidating your debt, you can also potentially lower your total monthly payment by making a single payment on the mortgage, instead of each debt. This significantly frees up the cash flow for your monthly savings, paying off certain expenses, and even investing. Another benefit of consolidating your debt is that it can help improve your credit score.