Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts. Multiple debts are combined into a single, larger debt, such as a loan, usually with more favourable payoff terms—a lower interest rate, lower monthly payment, or both. Debt consolidation can be used as a tool to deal with student loan debt, credit card debt, and other liabilities. 

 

One of the main benefits of Debt Consolidation with Ontario Mortgage Group, a team with Mortgage Alliance, is that we help you pay off your debts and try to put the most money in your pocket as possible. This can reduce years of payments and save you thousands of dollars in interest. It can also help you improve your credit score if you keep up with your monthly payments.

 

HOW DOES DEBT CONSOLIDATION WORK?

A Debt Consolidation Loan uses the equity you have saved in your property. This is also considered a Home Equity Loan because you are using funds from your property to pay off your debts by combining them and paying back the equity in your home in just one single lower monthly payment. This type of loan can help you save money on monthly payments by settling other higher-interest debts and replacing them with a lower short-term interest-only loan. This loan’s interest rate is much lower than a typical credit card which is why your monthly payment would be so much cheaper.

 

WHAT ARE THE ADVANTAGES OF CONSOLIDATING YOUR DEBT?

• Improves Credit Score - Paying off other debt will help you work on this single low-interest payment

• Cash Flow - Due to your high-interest debts paid off, this allows you to begin saving more money in return

• Streamline Your Payments - This is the process of turning five separate debts into one single lower payment

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FOR MORE INFORMATION, CONTACT US USING THE FORM BELOW

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