Debt Consolidation after Holiday Spending
The holidays are a wonderful time to share with family and friends. Perhaps you traveled to your hometown to visit your parents and extended family, or perhaps you went on vacation to escape for quiet, relaxing time together with your family. You probably indulged in big meals, exchanged lots of gifts, and went out to see a special play or musical for the holidays.
Now that time has come to an end, and the New Year is here. Unfortunately, that means that the bills are rolling in, too.
How much did all of those holiday celebrations cost you? Hundreds? Thousands? More than you care to think about?
You certainly are not alone. Many Canadians are faced with big debts in the month of January as a result of holiday spending.
Many people resolve each New Year to pay off their debts. However, the challenge can quickly become frustrating, and many people give up or experience failure before January has come and gone. Fortunately, you can pay off those high-interest debts quickly and easily through debt consolidation.
Debt consolidation is an excellent choice for many people.
When you consolidate your debts, you can roll your high-interest debts, like credit cards or car loans, into one low-interest mortgage loan. This gives you the opportunity to restructure your debt and pay it off sooner.
Instead of making multiple payments every month for a mortgage, car loan, major credit cards, and department store credit cards, you could make just one payment that is significantly less than the total of all of those other payments. This is a great way to start the New Year off right and get your debts paid off once and for all.
Many homeowners wonder how much they can actually save through debt consolidation, and whether it is worthwhile. Here is an example of how much you can save through debt consolidation.
Let’s imagine that you currently have a mortgage of $200,000 at 5% interest, with a monthly payment of $1,163. You also have a car loan for $20,000 at 3.5% interest, for a payment of $447. You have $20,000 in credit card debt at 28% interest, with a monthly payment of $600.
That would bring your total debt to $240,000, with monthly payments of a grand total of $2,210. If you were to consolidate your debt, you could have a new mortgage of $240,000 at just 3.39% interest.
Your car loan and credit cards would be paid off, so those high-interest debts are eliminated. You would only be paying the mortgage each month, at a monthly payment of $1,184. That’s a savings of $1,026 per month.
That opens up a lot of options. With more than $1,000 that you save every month, you could loosen up your budget and improve your cash flow. You could also pay down your mortgage sooner.
By paying just an extra $500 per month toward your mortgage, you can reduce your amortization from 25 years to 15 years.
The debt that comes from holiday spending can be a major source of stress for many Canadians. Don’t worry about it any longer. Take advantage of debt consolidation, and you can greatly improve your financial situation and pay off high-interest debt now.
To learn more about debt consolidation and how it can help you, get in touch with the Mortgage Ladies. We will assess your situation and advise you on the best options for addressing your debt.
What are your waiting for?
Call the Mortgage Ladies at 905-789-8198 to find out more about debt consolidation today or visit our office.