More Borrowers Turn to Debt Consolidation to Pay down Bills
It’s estimated that 80% of Canadians hold a high consumer credit card debt load – and one of the latest trends to hit Canada is debt consolidation.
More and more Canadians are tapping into the equity in their homes to consolidate their debts, but is this a good thing? Will people be able to pay off their debts, only to end up in more of it? Here we’re going to talk about debt consolidation trends and what they could mean for the greater Canadian economy.
What Is Debt Consolidation?
Debt consolidation allows you take your high interest credit card debt, medical debt, or any other kinds of debts and mold them into a more manageable payment. Instead of having a dozen different creditors to work with, you’ll have just one – making your life a lot easier. If you have equity in your home you can draw on that to get debt consolidation deal.
You’ll still want to be very careful, because there are many unscrupulous companies out there that want to take your money. Working with a Canada mortgage broker you’ll be able to get all the help you need to find the right consolidation specialists that best fit your needs.
Why Is Debt Consolidation so Popular?
80% of Canadians are drowning in debt, but with debt consolidation many have an easy to manage way out. If you’re tired of trying to figure out who you owe money to, tracking payments every month, or you are just tired of the crushing weight of your debts over your head, this could be the right choice for you.
It’s important to know that you have enough equity in your home to do this. It’s not for everyone – you may have to save up a large sum of money or borrow against your home with a private mortgage to qualify. This should be a last resort action – if there some other way to manage your debts, make sure you take it.
Debt Consolidation Scams on the Rise
You don’t want to do this kind of thing on your own, you’ll want to make sure you’re working with a Canada mortgage broker to see if they can help you make the most of your equity. Never work with professionals that send you something in the mail – you’ll want to make sure that you’re the one that’s soliciting their services, not the other way around.
Scams are so popular because most home owners just don’t know what they have until it’s gone. You’re going to want to be very careful about who you work with. Checking out each company on the BBB website is a good start, but you’ll also want to see what kind of reputation they have online. If people have had problems with the company stealing their money instead of actually helping them with debt consolidation, stay away.
Do your research and make sure that this is the right thing for you before you sign on – talk with a financial planner or a Canada mortgage broker and see if it’s right for you.
Homebase Mortgages is a leading Toronto mortgage broker, which specializes in all types of mortgages ranging from home equity loans, second mortgages, private mortgages, mortgage refinancing, mortgage renewals, home mortgages and hard money lending. TO learn more about their debt consolidation options please visit them at: http://www.homebasemortgages.ca/debt-consolidation/
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