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Debt Consolidation: Breaking The Cycle & Starting Fresh

Debt Consolidation

Debt Sucks, and freedom from debt is the sweetest relief of all. Using your home equity to consolidate debt could save you hundreds of dollars per month. If you have a significant amount of credit card debt, tax arrears, personal loans, etc. you will seriously want to consider refinancing to consolidate your debt into a new mortgage.

Don’t know how it works? That’s alright, we’ve got you covered! Here’s a short video clip to explain the process:

To clarify, here’s the basic benefits of debt consolidations:

1) High interest rates
Many credit cards have extremely high interest rates associated with them, reaching 20% or more. If this is the case for you, your debt tends to grow faster than you can pay it off.

Matrix Mortgage Global can consolidate credit cards into a new mortgage at a lower interest rate, which means this cycle of minimum payments and growing balances comes to an end. Not only does this save you money every month, but it saves money in the long run, too!

2) High monthly payments
High interest rates and balances mean high monthly payments. If something happens where cash flow becomes tight, such as the loss of the job, unexpected family emergencies or loss of health; these payments can be more than someone can handle. What happens next? A stressful domino effect of missed monthly payments, harassing phone calls from creditors and increased interest rates.

By using your home equity to consolidate your existing debt, Matrix Mortgage Global puts all that to an end and makes the debt more manageable.

3) Too Many Bills To Keep Track Of
Having numerous bills to stay up to date with at different times of the month can make it difficult to keep track of. Mistakes happen when you’re not sure what payment is due when, and for how much. By refinancing or getting a 2nd mortgage, there is only one payment each month, and for far less at that!

Example: 

Mastercard: 
Balance: $10,000
Interest Rate: 19.99%
Minimum Monthly Payment: $380.00

Store Credit Card:
Balance: $6000
Interest Rate: 29.99%
Minimum Monthly Payment: $260.00

Visa:
Balance: $8000
Interest Rate: 24.99%
Minimum Monthly Payment: $320

Tax Arrears:
Balance: $12,000

Total Debts: $36,000
Total Monthly Payments: $960


Debt Consolidation (2nd Mortgage)
Debt: $0
2nd Mortgage: $36,000

Interest Rate: 12% 
New Monthly Payment: $360.00 
Monthly savings: $600 + Tax Arrears Up To Date

Here at Matrix Mortgage, we love seeing our clients go from the red to the black. To make your home equity work for you and free up your cash flow with a debt consolidation, get in touch at 1-800-429-0717 or talk with our chat support. 

debtfree

 

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