Debt Consolidation Loans Vancouver

Top 4 options

Debt consolidation loans and home equity loans are becoming increasingly more popular. Vancouver’s increasingly high cost of living is resulting in many wallowing in debt and desperately looking for a solution. Debt problems can be anything from student loans, credit card debts, business loans and the like. These debts may have become seemingly insurmountable that you are now seriously thinking about filing for bankruptcy. But, wait! Debt consolidation loans and home equity loans can possibly solve your debt problems and help you regain your financial footing and that is debt consolidation

What is Debt Consolidation?

Debt consolidation, refers to the act of combining multiple debts into a single financial obligation. There are two general ways by which you can benefit from debt consolidation solutions. One is to take out a large debt consolidation loan or home equity loan to be used in paying off your smaller loans. For example, with one larger loan debt consolidation loan, you can pay off your car loan, your credit card debts, and any of your other debts. You may then concentrate on paying off the single debt, which means dealing with just one interest rate, too. The second method is by participating in debt relief programs.

These two general methods are further sub-divided into four specific debt consolidation options.

Debt Consolidation Options

  1. Refinancing
    There was once a time when refinancing was considered by many homeowners as one of the most viable debt consolidation options, especially when home equity loans and other loans still came by easily. These days, however, when the value of homes have significantly declined and most mortgage brokers and developers are pressuring homeowners for payments, refinancing has become an option that only a very few people can realistically consider. In today’s economy, converting your unsecured debt into a secure debt may just put your home and your credit at risk. A Ronin mortgage broker can help you decide whether a home equity loan is right for you.
  2. Personal Loans
    This financing option is often unsecured and designed for smaller loan amounts. This usually places more risk on the lender’s part, since there’s no collateral required. For this reason, lenders have taken measures to make this option more difficult to take. For one thing, these loans are often financed at much higher interest rates. You’re likely to have some difficulty consolidating your debts with this method.
  3. Debt Settlement
    Debt consolidation through debt settlement can significantly reduce the total amount of your debt as well as the required monthly payments.  It may also eliminate the interest charges and other fees when you pay off loans, thus helping you become debt-free within a much shorter period. However, these programs often have an adversarial nature, which can lead to complications that may convince you to drop out of the program.
  4. DMP
    Debt Management Plan or DMP entitles you to benefits that often go beyond financial counselling. Among these benefits are lower interest rates, consolidated monthly payments, relief from lenders’ phone calls, a stoppage of late fees, and protection of your credit score. What’s best is that this debt consolidation option allows you to pay your debt in full in just about five years.

Before deciding on debt consolidation solution you may want to chat with one of our debt consolidation experts at Ronin Mortgage. We understand the high price of living in Vancouver and have the solution where you can pay off your  high interest debts by adding them to your low interest mortgage.

Call us for debt consolidation in Vancouver now!