The level of consumer debt now carried by Canadians is at an
all-time high. Having too much debt is a serious problem and may require a
financial action plan. Do you feel like you’re drowning in debt? Refinancing
for debt relief may be a viable financial solution.
Anyone who has a credit card knows – it is very easy to go
into debt and much harder to get out of it. Canadian households now carry a
record-high level of credit card debt. For some, this debt load may be causing
them undue stress. If you are only able to pay the minimums on your credit
cards and feel like you’re just treading water when it comes to your debt load,
it may be time to make a financial plan for your future.
Facing the Facts
Many Canadians are unaware of how much debt they actually
have. It can be disheartening to look at the numbers when you are just getting
by financially. However, turning a blind eye is not the way to win the battle
with debt. It is important to stay informed, as this is the first step toward
financial freedom. Take stock of your outstanding debts and their corresponding
interest rates. Be realistic about your disposable income and set some spending
limits. Lastly, look at your assets. Do you own a home, car, or rental
property? Your assets may be the key to getting your financial independence
Managing Your Assets
In hard times, you may feel like your assets are useless. However,
if you can downsize, rent, or trade down your personal items, it may be time to
do so. If you have a mortgage, you may be eligible to refinance your home and
access some of the equity you have built up over time through your mortgage.
Refinancing Your Home
For many, refinancing their home is a smart financial move. Taking
out a second mortgage makes you able to use the new funds made available to you
to pay off all of your outstanding debts. This will give you a clean financial
slate, and you will only have to pay the one mortgage payment to your lender,
usually at a much lower interest rate.
If this is an option that sounds possible for you, you
should see a knowledgeable mortgage expert. A professional can consult you and
is extremely knowledgeable on all types of fixed and variable rate mortgage
structures. A financial expert can help you plan for the future, and you may
save a bundle in the long run.
If you are making minimum interest payments on your credit
cards, and are worried about your debt load, don’t ignore the problem. Talk to
a knowledgeable expert to help you with refinancing for debt relief. You may be
glad you did.