Different options in debt consolidation

by Daily Web TV Team | 224 days ago | 632 page views
Topics: Education

If you’re stressed and frustrated about financial issues, you need to remember that you’re not alone. With the guidance from debt experts, you can learn how to solve your financial problems on your own, with resorting to a consumer proposal or needing a personal bankruptcy. North Bay’s debt help experts Mark Cooper and Debbie Martin from BDO help clients in North Bay, Huntsville, Parry Sound and New Liskeard offices solve their money problems with legitimate debt solutions.

“A question we’re often asked is how to ‘consolidate debt’ since people have seen advertisements about the concept, but don’t really know what it means,” explains Martin.

“The idea of debt consolidation is pretty simple. You replace all your credit cards and other credit debts with just one debt. The goal is to replace debts with higher interest rates with just one, lower rate that also has better repayment options. This will save money and should allow you to pay off all your debts with a single monthly payment that is more manageable,” says Cooper.

You can consolidate your debt in two ways. The first is to take a debt consolidation loan, which would be for the total amount of all your other debts, allowing you to pay those off and have only the one loan to repay. With a lower interest rate and better repayment terms, the one monthly payment should be better for you than paying all the debts separately. You will, however, need a good credit rating and income to qualify for the loan.

The next second option is to take a second mortgage. Since a mortgage is “secured” against your home, this is often easier to get from the bank than a consolidation loan, but you’ll still need to qualify. For this, you need to have paid off a fair bit of your original mortgage, so you will have what’s called ‘equity’ in your home. You’ll also need a good credit rating and income. If approved, you can consolidate all your debts with the second mortgage, reducing the monthly payment and making it easier to pay off your debt.

“Solving financial problems on your own is best,” admits Martin. “At BDO, we’ll help you determine if these debt consolidation solutions are possible in your individual circumstances. We’ll also help you plan budget strategies to avoid future problems after debt consolidation.”

For more information about North Bay’s debt help experts, or information on all legitimate debt relief strategies, visit www.northbaymoneyproblems.com.

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