June 16, 2016

Reduce Payments and Eliminate Debt Faster!

debt_stress

Debt  happens. Sometimes through no fault of our own. Sometimes because we made poor choices. Regardless, the pressure can be suffocating and humiliating.

But did you know you can use equity in your home to consolidate multiple debts into a single payment at a lower interest rate? This means:

  • more money can go to toward paying down principle faster
  • total monthly payment can be reduced
  • convenience of a single payment
  • improved credit score as you can now make payments on time

Example before consolidation refinance

BEFORE   
DebtAmountInterestMonthly Payment
Mortgage$215,0004%$1,300
Credit Card(s)$25,00019%$750
Car Loan$33,0007%$500
TOTAL$273,000$2,550

In the examples below, an additional $5,000 is added to the total loan amount to account for prepayment penalties associated with breaking the original mortgage.

Debt Consolidation Example using same 20 year amortization

AFTER   
DebtAmountInterestMonthly Payment
Mortgage$278,0003.49%$1,607
Monthly Savings:$943

Debt Consolidation Example using 30 year amortization

AFTER   
DebtAmountInterestMonthly Payment
Mortgage$278,0003.49%$1,243
Monthly Savings:$1,307

family_silhouette

Imagine the relief. Imagine the ability to refocus on the important things in life.

Food for thought…

Debt consolidation deals with the immediate symptom, not the cause. It should be done as part of a careful budget review and honest assessment of needs vs wants in order to avoid a repeat situation.

Let’s get started today! Give me (Tim) a call at 250-550-8272 or use the contact form on this page.