, we explore various debt consolidation and refinancing options Canadian homeowners can choose from to achieve financial freedom once and for all.
Debt consolidation – the process of combining all your high-interest debt into one monthly payment – is one of the best ways to getting back on the road of financial health.
Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.
That's particularly helpful if you can combine it with a lower interest rate as well. Basically, you borrow a single, lump sum of cash that's used to pay off all your other debts.
Many national banks offer HELOCs to homeowners who wish to simplify the problem of many unrelated monthly payments into one simple bill.
Consolidating the bulk of your high interest debt into one lower interest loan based on your home's credit can certainly lessen the pressure of monthly bills, but it can also serve the purpose of bringing you income tax credit as well.