How to Get Out of Debt Fast

Do you find yourself struggling to make those monthly bill payments because you have a lot of debt? Are you conscious of the fact that many of those monthly payments go only to interest while paying off very little of your actual outstanding balance? There are ways to get out of debt fast out there, but sometimes it is difficult to know which ones are best for you. 

Do you constantly hear those offers on the radio that talk about debt consolidation and find yourself thinking about them as an option for solving your debt problems?  These options are being provided by bankruptcy trustees or debt counsellors – but they are often not the best option, especially for homeowners. Firstly, these solutions come in the form of a consumer proposal or bankruptcy. Although they can help you get out of debt fast, these options can have devastating long term impacts on your credit, negatively impacting your ability to secure financial funding in the future. Your ability to purchase a new home, refinance your mortgage, or even buy a car can be severely reduced when you have a consumer proposal on your credit report.

So how do you get out of debt fast? If you are a homeowner, refinancing your mortgage is a much safer financial option for getting out of debt fast. By consolidating your debt through refinancing your mortgage, you eliminate the various minimum monthly payments – much of which are primarily interest - into one manageable payment.

Additionally, not only is this single monthly payment much smaller than what your various others combined were, having it combined into a refinanced mortgage ultimately saves you thousands of dollars in interest long term. It is also far likelier that you will be able to pay off the mortgage sooner than if you had kept all of the credit card balances going and paying only the minimum payments.

Banks vs. mortgage brokers – how do they fare when you are trying to get out of debt fast? Have you been to the bank and discussed your options regarding how to get out of debt fast, but failed to receive approval? This is often because banks stand to gain from your continuing to pay only the interest on your credit cards – think about who controls many of those cards in your wallet! The longer you pay only the interest instead of paying the cards off outright, the longer the bank makes money off of you. Also, banks tend to work with fewer lenders and follow stricter guidelines when it comes to who qualifies.

Mortgage brokers on the other hand work with a much more diversified portfolio of lenders and are able to cast a much wider net. This means that the options available to you for getting out of debt are much more numerous when working with a mortgage broker. Rather than focusing solely on your credit score, a mortgage broker can often secure you financing at a good rate when the bank has continually refused.

There are many options out there to help you get out of debt fast, but if you are a homeowner, refinancing your mortgage is usually the best choice! For more information on how to get out of debt fast, please contact Paul Mangion at The Mortgage Centre by calling 416 204 0156 or visit www.themortgagecentretoronto.com

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/