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The holidays are a season of giving and oftentimes, households find themselves carrying some extra debt as we enter the New Year.

Who Should Consolidate Debt

If you happen to be someone currently struggling with some post-holiday debt, that’s okay! Whether you’ve accumulated multiple points of debt from credit cards or are dealing with other loans (such as car loans, personal loans, etc.), you are likely looking for a way to simplify and reduce your payments. Rolling them into your mortgage could be the perfect solution.

Benefits of Consolidating Debt

Consolidating other forms of debt into your mortgage has multiple benefits. This can help you pay off your loans with smaller monthly payments, and often at a reduced interest rate compared to a credit card. By freeing yourself from these high-interest rates and gouging interest payments, you will not only have more money each month but have a better chance of taking back your financial control and getting your loans completely paid off!

If you’re still unsure if this is the right solution for you, here is an example… if you have $30,000 of credit card debt, you may be paying about $500 in interest. Vinil can help you to roll that debt into your home equity and monthly mortgage, your payment to this $30,000 portion with interest charges closer to $140 per month.

Debt consolidation into your mortgage may help with reducing interest charges and making your loan more manageable. It is also much easier to pay a single monthly installment versus managing many different loans or bills. Your mortgage will increase since you have to add the debt to your existing mortgage amount. However, the benefits of lowering your overall payments and management can be well worth it. Keep in mind, you need at least 20 percent equity in your home to qualify for this adjustment.

If you are looking for a way to simplify (or get out of) debt, reach out to Vinil! He would be happy to look at your current mortgage and help you come up with the best option.