Are you in financial trouble?
Are you in financial trouble? You are not alone! Many Quebecers experience financial difficulties and quickly accumulate debts, which have a negative impact on their credit file. The consultants at Refinancement Hypothécaire can help you regain control of your finances and avoid having to declare bankruptcy. Call us today to schedule a debt consolidation!
What is debt consolidation?
A great alternative to personal bankruptcy, debt consolidation is the process of combining all your debts into a single loan. Instead of paying your various creditors (credit cards, lines of credit, banks, etc.), you combine all your debts into one monthly payment to a banking institution! When done properly, consolidation is a simple and effective option to regain control of your debt level.
Consolidate all your debts into one low-interest loan
Taking out a debt consolidation loan is a method of reducing both the interest you pay and your monthly payments. A consolidation loan is taken from a financial institution and the money is used to pay off all your other debts, especially your credit cards (which have a high interest rate). The result is the elimination of all your credit except at one financial institution.
Consolidation sounds simple, but to get the most out of it, you need an expert! The professionals at Refinancement Hypothécaire will be happy to guide and assist you in this process, in order to obtain the best interest rates and pay off all your debts as quickly as possible.
What Are the Benefits of Consolidation?
For many individuals who are in a high debt ratio, debt consolidation is the best option available. However, it is important to speak with a financial advisor or financial recovery consultant to get a good plan: when it comes to credit, nothing beats a consultation with the experts at Mortgage Refinancing.
1. get a better interest rate
The interest rates of many financial tools are sometimes very high, especially credit cards with an interest rate of 22%. Accumulating a balance on your credit cards can lead you to pay huge interests! Consolidating your debts brings all your credits under one lower interest rate: it’s a great way to stay in control and a solution to your financial difficulties.
2. consolidate all your debts into one monthly payment
It’s easy to get lost when you have several different creditors! Every month, we pay our credit card, personal loan, mortgage, car loan and so on, we are likely to forget. Paying all your debts with money from a new loan allows you to transform all your financial obligations into one monthly payment! Your budget will be easier than ever thanks to an expert advisor.
3. keep your credit rating intact
Unlike declaring bankruptcy, a debt consolidation loan will not have a negative impact on your credit rating. Since it is just another loan, you are not putting yourself in a bad financial situation. Don’t forget that declaring bankruptcy gives your file the “R9” mark, which makes it very difficult to access credit for 7 years. Refinance Mortgage can help you avoid this situation with a solid budget!
Debt consolidation could be the solution you need to reduce your fees and interest! Learn more by talking with us.
Why work with Mortgage Refinance?
Ensuring that the consolidation loan is beneficial to you
Debt consolidation brings many benefits to individuals who are having trouble covering all their payments and expenses, but only if the terms of the loan are favorable and reasonable. It is important to have an interest rate that is lower than the combined interest of your other debts, and to reduce the amount of your payments. For such an important decision for your future, we strongly recommend that you talk to financial experts!
Ensure you are able to cover the monthly payments
We all have a lot of good intentions, but willingness and ability are not always the same thing, especially when it comes to debt! The first step is to establish a monthly budget for the next few years and calculate your ability to pay and your expenses to avoid bad surprises. Refinancing Mortgage is here to help you be disciplined, not create new debts, take control of your finances and keep your good rating!
Having Financial Difficulties?
Are your credit card debts and expenses accumulating? Contact us to discuss the possibilities of debt consolidation for you and your family! Working with Refinancing Mortgage is the best way to get your debt under control without sacrificing your credit rating. We work with you to reduce your monthly payments and avoid having to declare bankruptcy.
Don’t let the situation get worse and the non-payments pile up before you take the right action and seek advice.
Contact Mortgage Refinance today for debt consolidation!
What criteria do I need to meet to apply for consolidation?
The majority of debt consolidation loans are made with financial institutions. They look for certain criteria before authorizing a debt consolidation request. Some of the reasons why financial institutions may deny your request are :
- A debt ratio that is too high;
- Unstable employment or low income;
- Poor payment history;
When you meet with our counselors, we will do a complete evaluation of your financial situation to determine the best way to pay off your credit card and restore your financial stability.
If you are turned down by a financial institution, Refinance Mortgage can help you with a private loan!
Learn More About Debt Consolidation
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What financial habits cause difficulties?
Certain financial habits inevitably cause debt problems for Quebecers. During a debt consolidation meeting, our experts can work with you to develop a solid plan and useful financial advice.
Common causes of debt are:
Having multiple lines of credit;
- Paying bills after the due date;
- Poor monthly repayment habits;
- Making only the minimum payment each month;
- Ignoring bills and letting them go until collection;
- Postponing savings for retirement or rainy day;
- Making impulse purchases or going into debt for a product or service beyond your ability to pay;;
- Lack of debt management and follow-up, such as credit card balances;
Does debt consolidation affect my credit report?
A debt consolidation is a loan from a banking institution or private lender. Unlike a bankruptcy filing, taking out a new loan will not negatively impact your credit report with Equifax or TransUnion. However, it is important that you do not miss any payments, otherwise each missed payment could bring your credit report down very quickly!
That’s why meeting with experts is a great first step if you’re thinking about debt consolidation and looking to improve your credit report. The consultants at Refinancement Hypothécaire will be happy to discuss your financial situation to find the best solutions for you!
What interest rate should I aim for in a consolidation?
The goal of debt consolidation is to help you reduce your monthly payments and regain control of your financial situation. Our advisors are here to help you determine if the interest rate on a debt consolidation loan is right for you and will reduce your monthly payment!
When you accumulate interest on all your debts (personal loan, line of credit, credit card, etc.), your monthly payment grows quickly! This can have serious consequences and puts you at risk: missing a payment can have a major impact. We make sure with you that the interest rate of the consolidation is lower than all other accumulated debts and will save you money.
What is the difference between bankruptcy and debt consolidation?
Bankruptcy is a way, like debt consolidation, to get out of debt when you are unable to pay it on time. However, bankruptcy is fundamentally different from consolidation!
In a bankruptcy, you give your assets to an outside entity, usually a bankruptcy trustee, to liquidate your assets and notify your creditors. This comes with several advantages and disadvantages:
- You are discharged from your debts entirely
- You are protected from your creditors
- You lose most of your assets (house, car, etc.) to settle your debts
- Your credit file is affected for at least 6 years
Given the impact that bankruptcy can have on you and your family, it’s important to consider all other financial recovery options available! The consolidation option, for example, allows you to keep your assets, whether it is your home or your car. The best approach is always to consult professionals for advice. Mortgage Refinancing is here to help!
What is the difference between consolidation and a consumer proposal?
A consumer proposal, unlike a consolidation, is a new repayment agreement between you and your creditors. Usually made by a licensed insolvency practitioner (LIPS), this new agreement allows you to reduce the amount of your debts and extend your payments over a longer period of time to give you a chance to pay off your various balances.
There are disadvantages to a proposal, particularly a negative impact on your credit rating during the term of the agreement and for several years thereafter. You also need to be absolutely sure that you can cover all your payments on time, otherwise the proposal may be cancelled and creditors may impose their own repayment terms on you.
