How Can I Get All My Debt Into One Payment?

If you are struggling with a large amount of high-interest consumer debt, it may feel overwhelming and you may wonder whether you’ll ever be able to finally be debt-free. The good news is that there are options to help make paying off debt easier. If you have debt and you are a homeowner, the first step you should take is to call your mortgage broker. 

Mortgage brokers aren’t just for when you want to buy a home. They can also help you when you are in trouble with debt. At Matrix Mortgage global, we offer a number of solutions to help you get all of your debt into one easy, lower-interest payment. 

Mortgage Refinancing – this is when you break your current mortgage and get a new one. When this is done for the purpose of debt consolidation, your new mortgage is larger, allowing you to roll your existing debts into your mortgage. Of all the options we offer, this one will usually have the lowest interest rate, but it is also likely to come with a financial penalty since you are breaking your first mortgage. This option is generally best when you are fairly close to your mortgage renewal date. 

Second Mortgage – With this option, there is no need to break your first mortgage. You simply get a new mortgage (a second mortgage) against the equity you have built up in your home. Most lenders will allow you to borrow up to 80% of your home equity although there are a few lenders who will let you borrow even more than that. With this option, your interest rate will be a little higher than it will be with mortgage refinancing however, there will not be a financial penalty since you will not be breaking your first mortgage. This option is generally best when you are not close to your mortgage renewal date. 

Home Equity Line of Credit – This is a revolving line of credit that works in a similar way to a personal line of credit with the main difference that you are using your home’s equity as collateral. This option is best if you want to continue borrowing from and paying back into your home’s equity in the future. 

While all of these options can help you get all of your debt into one payment, it is important to note that you must still be disciplined in paying off your debt. Since you are using your home’s equity, you may risk losing your home if you become unable to make the payments. 

If you would like to learn more about any of our debt consolidation strategies, contact Matrix Mortgage Global today.