Debt Consolidation Before The Holidays

The holiday season is quickly approaching. For many homeowners, the idea of the holidays can bring stress and anxiety rather than joy. A time of year that should be spent celebrating and enjoying time with family can really be a burden for many families because of the financial pressures that are created.

Even for those who are not struggling with debt, the Christmas season can be a big expense. On average, Canadians spent nearly $1400 on Christmas-related expenses last year. That total includes Christmas gifts, travel, holiday entertaining, and other miscellaneous expenses.

No one wants to stop buying gifts for friends and family or skip the annual trip to visit the grandparents at Christmas, but these expenses can really add up.  If you are already struggling with debt, the financial pressures of the holiday season can be a major source of stress for you.

So what can you do to prepare for the stress of the holidays?

One great option is to pursue debt consolidation.  Many Canadians have credit card bills, car loans, and other outstanding debts that they are making payments on every month.  Those interest rates can be quite high, and you may end up paying every month but never really impacting the principal balance on those accounts because of the excessively high interest rates.

Debt consolidation is a great solution. When you combine all of those various debts into one payment, you can significantly reduce the interest rate on your debts. This means a much lower monthly payment, and you can end up with a lot more money left over at the end of each month.

Why Consolidate Debts Before the Holidays?

There are many advantages to choosing debt consolidation before the holidays. One benefit is that you will save money. Let’s look at the numbers.  Here is a breakdown of monthly expenses for a typical homeowner.

Debt Consolidation Benefits

  • A much lower monthly interest rate that all your debts will now fall under
  • Lower monthly payments
  • The comfort and convenience of making only one monthly payment
  • Improved credit score from making all your payments on time
Mortgage$215 000*4.50%$1355.37
VISA or MC$20 00018.5%$600.00
Car Loan$20 4404.6%$382.00
Dept. Store Card$500029%$150.00
 $260 440  $2487.37

*With mortgage amortized over 20 years

Mortgage$265 440**3.45%***$1529.30

**With the same 20-year amortization and adding $5000 for an early repayment penalty.
***Rate subject to change

The total is $1529.30 – A MONTHLY SAVINGS OF $958.07

Rather than paying $2487.37 every month at high interest rates, you can consolidate all of these debts into one payment at a much lower interest rate. Interest rates are historically low, which is great news for anyone who is facing debt. This is your opportunity to save hundreds of dollars every month by taking advantage of these low rates.

With the holidays approaching quickly, you may be thinking that a debt consolidation loan is a good idea so that you don’t face the New Year with maxed out credit cards and a budget that is stretched to its limit.

Save hundreds of dollars in interest by creating a pay down plan now.  By consolidating and restructuring your debt into your mortgage you are paying less interest, paying off debt sooner resulting in entering the Holiday season on the right foot by saving money.

You will be free of any buyer’s remorse or feelings of guilt and anxiety when the bills start rolling in next January.  Instead, you’ll have a clean slate and lower out-of-pocket expenses every month.

If debt consolidation before the holidays sounds like a good option for you, contact the Mortgage Ladies at 905-789-8198.  We will help you to find a great mortgage product that saves you money and prepares you for a Christmas season without stress and anxiety.

Contact the Mortgage Ladies to learn more about debt consolidation today.