If you own a home in Brampton, you may have many financial options over the holidays to get rid of your credit card debt and bring in the New Year with one low monthly payment.
The problem with credit cards is that once you accumulate a lot of credit card debt, it is easy to get into a cycle of only making your minimum payments. This is scary because if you get into a cycle of only making minimum payments to high interest credit cards, they could take as long as 35 years to pay off.
The best thing to do is assess your debt load. If you divide your total debt by 6 you will arrive at the approximate number (not including interest payments) that you would have to pay monthly to pay off your debt within 6 months. If you can’t afford to pay off your debt in 6-12 months and you own a home in Brampton, Mississauga or anywhere else in the GTA, you should now explore your financial options.
If you have a low rate first mortgage and your debt load is less than $20,000, a home equity line of credit is a low rate, affordable and flexible credit product that you can use to consolidate you credit card debt and cut down your interest. Usually home equity lines of credit bear minimum payments equal to 1% or 1.5% of the balance. Just because the minimum payments are low doesn’t mean you should only make minimum payments. Given the payments you will have eliminated by consolidating, you should use this as an opportunity to double and triple up on your payments to your line of credit and in no time it will be paid off completely.
The same result can be achieved through a home equity loan. Those who have significant debt should consider refinancing their first mortgage and starting the New Year with one fresh new monthly payment.
Brampton homeowners can take advantage of the services of a Mississauga mortgage broker or Brampton mortgage broker to achieve financial goals where their homes are concerned. These professionals are seasoned in the Brampton real estate market and will ensure that you find out about the best available deals in your area.
For more information about consolidating debt in Brampton during the holiday season visit www.gtamortgagematters.com.