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Mortgage Refinance to Consolidate your Debts in Canada

Remember that feeling when you first put your down payment on your dream house? It is perfect. Close to your workplace and in a lovely neighborhood. Just how you always wanted it to be! No more paying monthly rents in tin-can apartments where your money goes to waste. You finally have a house to call your own.

Few years have passed; you are feeling anxious and nervous. The mortgage payment is making your life hell. After paying for the mortgage every month, you are almost left penniless. You can barely manage to pay for your other expenses let alone have a good look at the horrifying credit card bills. If this is your story, then don’t be ashamed or scared; thousands of Canadians will narrate the same episode if there was a “Burdensome Mortgage Payers Anonymous” in Canada.

Most distressed souls paying hefty mortgages every month find it terribly hard to leave funds aside for their remaining debt payments. What is the solution? Well guarding your most priced possession – your home – is by all means your priority. All you need is a little help to pay the rest your debt. And once that is done, you can go back to concentrating only on your house.

Mortgage refinance may be your ideal solution. Let us assume that your total home loan amount is CAD100 stipulated over a period of ten years. In five years, you have managed to pay CAD50 and have an outstanding debt of CAD50 left. Now let us assume that you are unable to pay the pending amount given your current financial situation – your monthly income, other debts and expenses, etc. by opting for mortgage refinance you can actually take another loan of CAD50 to pay off your mortgage in total. You may think that this is a silly idea, as what is the point of filling a hole by digging a new one? Well, there are plus points to this method. For your new loan, you can get a much lower interest rate. Further, the amount you are paying every month can also be considerably reduced by elongating the time frame for repayment.

Since mortgage refinance is a secure loan unlike a credit card debt, it is possible to avail of facilities like lower interest rate. So the lender holds collateral – in the form of a real estate property – to reduce the risk of losing his money.

A lot of individuals may have trouble getting their mortgage refinanced. Reason being; if your outstanding debt (credit cards for example) is reasonably high then the financers might think twice before refinancing your mortgage. If you are having a tough time refinancing your mortgage, then the next best option for you would be to settle one or more of your accounts via debt settlement. With this method, you can negotiate your outstanding debt with one or more of your creditors with the help of expert guidance and repay the revised amount in a stipulated period of time. Depending on the negotiating capacity of the debt settlement company assisting you and other factors like your financial capacity, running income, etc. you can reduce your debt by as much as 50%.

While working with a debt settlement company, make sure that the company’s interest is to guard your home while settling your other accounts with the creditors. Whether you get your mortgage refinanced or settle your debts with debt settlement, remember that if you are not careful with your finances you will find yourself in the same position time and again. Plan your finances in order to avoid muck-ups in the future. Take assistance of a expert company that can help you repair your credit, start afresh and improve your overall financial well-being.

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