How to Get Out of Debt Fast

There is no shortage of “leisure suit Larry’s” out there, offering variations of “get out of debt quick” schemes, even going so far as to promote their services as debt consolidations. These services exist because nowadays so many Canadians are looking for ways to get out of debt fast.

There are several options available to those who are looking to rid themselves of debt. Some will take longer while some provide immediate debt relief. Some solutions to get out of debt will help your credit, but choose wisely. The wrong choice, the wrong method will further destroy your credit.

So how can you get out of debt fast without destroying your credit?

If you are a homeowner, the cheapest and most flexible solution is to consolidate your debt and reduce your monthly payment. You can achieve this by refinancing your first mortgage, taking out a small second mortgage or by opening a line of credit. Any of these options will prove the following benefits:

- This type of credit often charges much less interest than traditional credit cards and store cards

- Low payments will immediately increase your cash flow

- If you have a lot of debt, you can often borrow more from your home than an unsecure consolidation loan

If you are a homeowner who has struggled with credit, all is not lost. There are many lenders who do offer home equity loans even to those who have past credit problems.

In recent times banks have become much tighter with their lending practices. They will often decline a homeowner for a mortgage to consolidate debt, even if they have good equity. They cite reasons such as a bad credit history or the inability to prove their income. While banks may be shying away from these types of deals there are many lenders who are not.

There are a number of trust companies, private lenders and mortgage investment corporations who do help homeowners currently drowning in debt. You can find out about these types of lenders and access them through a local mortgage broker, one who specializes in working with people who have bad credit histories.

If you don’t own your home and depending on your credit, other choices to get out of debt fast include unsecured debt consolidation, credit counselling, consumer proposals and bankruptcy.

Before going to your bank, a debt counsellor or in the worst case scenario, a bankruptcy trustee, speak to a good mortgage broker about your options – it could be a choice that saves your credit and puts you on the road to increased wealth and financial stability. For more information about how to get out of debt fast please visit http://www.gtamortgagematters.com/