Debra Williams BBA
Tips to pay down your holiday billsFor many of us, the warmth of holiday gift-giving has suddenly been replaced by a mailbox stuffed with fat credit card statements, reminding you what a fabulous time you had over the holidays. But the holiday season can further added to your debt burden. Most Canadians suffer with their highest debt load in the winter – as their holiday bills come home to roost. That’s why it’s the perfect time to talk about a personalized Paydown Plan.
Homeowners are recognizing that they need to get smart about debt. Canadians pay a shocking amount of money on their high-interest debt, whether it’s credit cards, unsecured loans, or tax bills. It all adds up. But if you have equity in your home, there’s no good reason to be carrying high-interest debt. It doesn’t cost you anything; in fact, it could save you thousands of dollars in interest. We can help you consolidate and restructure your debt so that every payment you make actually goes further.
This may be the year to do it; we’re still benefiting from one of the best mortgage environments in memory. Take a look at the interest rates on mortgages these days. Now look at what you’re paying on your credit cards and other debts. You can actually power up your debt paydown by rolling your credit cards, car loans, or any other high-interest debt into a new or existing mortgage. We can benefit from low mortgage rates to enjoy our lives and our homes – and to manage our debt wisely.
Consider a situation where your department store credit card interest rate is 24%, your Classic Visa card is 19.99% and your Platinum Mastercard is 9.99%. Then consider rolling all that high interest debt into a mortgage where your interest rate is either 2.75%* for a 1 year fixed rate, 2.99%* for a 3 year fixed rate, 3.39%* for a 5 year fixed rate or even lower at Prime minus 0.10%*.
Your new mortgage will allow you to save hundreds of dollars as your overall monthly payment substantially decreases with the lower interest rate. Home equity debt consolidation is a golden opportunity. Aside from the debt stress relief and interest savings, restructuring your debt will also give you a fresh start at responsible financial housekeeping. If this debt consolidation exercise gives you renewed financial comfort, you’ll want to maintain that ease by living within your means.
Independent mortgage planners – who have access to more than 50 different lenders, including most of the major banks – have become specialists in helping Canadians restructure debt. In addition to offering access to a broad range of mortgage options, these experienced planners provide credit advice and debt management tips that can help save thousands of dollars. It’s a great place to start.
*other conditions may apply
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