Top 3 Benefits of Debt Consolidation
Professional mortgage brokers can offer their clients are a variety of options when it comes to consolidating their debt. These options range from mortgage refinancing to getting a second mortgage or home equity line of credit.
If someone has ever recommended to you that you consolidate your debt, you may be wondering what the benefits are. In this article, we will share with you what we believe are the top 3 benefits for debt consolidation.
- Lower your interest payments
The more interest you are paying on your debt, the harder and slower it will be for you to pay it off. And some credit cards and other types of loans will charge you 18% interest or even higher. When you consolidate your debt using one of the mortgage strategies mentioned above, you could find yourself paying rates as low as 5%. That is a big difference, and you will find yourself paying off your debts much more quickly because you will be paying more of the principal.
- Lower your debt repayments
Sometimes people find themselves burdened with so much debt that even their debt repayments are hard to manage. When you consolidate your debt at a lower interest rate you can also lower the amount that you have to pay back each month. This will help you to improve your cashflow so that you have more money left over for savings and essentials.
When you consolidate your debt, you only have one payment to make to one lender instead of several. Not only does this save you time, but it also lessens the chance that you will miss a payment and harm your credit.
Even better, if you make your payment automatic, you will never have to worry about it!
How do I consolidate my debt?
If you think that consolidating your debt might be the right option for you, your first step is to contact a broker at 1Onefund Financial. They will review your situation and recommend the consolidation strategy that makes the most sense for your situation.
Contact us today to learn more.