We're all creatures of habit, for some of us the habit is to pay off debt and for others the habit is to utilize credit. The trouble is when you don't know what category you fall into. There are many people out there that think they don't use their credit cards that much but if you add up their debts it can be quite substantial.
Once people decide that enough is enough and now they really want to work on paying off their debt, the first place they tend to go is their bank. The problem is that this usually not the best place to go for many reasons, the least of which being that they are out for their bottom line.
Where did all the money go?
In recent years banks have really been cutting back their unsecured lending. This means that they [the banks] are tending not to lend money to people without using some sort of collateral (ie. house, car, boat, etc). The reason being, if the borrower doesn't pay the loan back they have nothing to take from you of the same value. The best that they can hope for is to take you to court and get a judgement to get the money. This creates an added finanical cost in addition to a lot of time to recoupe their money.
Use the equity in your home and save big!
One of the most valuable assets that you own is your home, properly used this asset can help you get out of debt. Using the equity from your home to consolidate your debts is a powerful way to improve your financial situation. In most cases we are able to help our clients lower there monthly payments by $500 to $1000 - AND - we are also able to show them how to cut, on average, 5 years off their mortgage at the same time.
For example, let's say you save yourself $500/mth, your natural reaction might be to buy something because now you have extra money every month to pay the payments. This is the worst thing you can do! Many banks and lenders will encourage you to do a mortgage loan refinance and debt consolidation but then not offer you any further advice. I'm different! As a Financial Advisor I look at things differently than a typical bank rep or mortgage broker. I look at the whole situation and how I can help you improve all areas: reducing debt, increasing lifestyle and creating wealth.
Check out how you can become DEBT FREE in 12 years and have $91,000+ to show for it!!!
Before Debt Consolidation
Item | Value | Pmt/Mth |
|---|---|---|
House Value | $275,000 | |
| | |
Mortgage: | $160,000 | $1,261 |
TD Visa: | $4,758 | $143 |
P/C Mastercard: | $6,321 | $189 |
TD Line of Credit: | $9,765 | $195 |
Car 1: | $8,243 | $247 |
Car 2: | $12,946 | $404 |
Total Debt: | $202,033 | $2,439 |
After Debt Consolidation
Item | Value | Pmt/Mth |
|---|---|---|
House Value | $275,000 | |
| | |
Mortgage: | $160,000 | $1,261 |
TD Visa: | $0 | $143 |
P/C Mastercard: | $0 | $189 |
TD Line of Credit: | $0 | $195 |
Car 1: | $0 | $247 |
Car 2: | $12,946 | $404 |
Total Debt: | $202,033 | $2,439 |
That's a savings of $620/mth!
In this case, consolidating would save the homeowner $620/month over 12 years. If the homeowner then invested only $400 per month it could turn into $91,875 (assuming 7% ROI per year) and still give them an extra $225 in their pocket each month.
Are you a candidate for this solution?
I speak to clients every week that have let their financial situation tumble down into a tail spin. I don't know whether it is denial, pride or maybe a bit of both but these clients are often so far behind in their bills that things are pretty much unrecoverable. It's important to call me BEFORE you run into trouble. My solution is designed for people that are paying their bills on time and have managed to maintain a good credit rating. There is one common trait with all of my clients and that is the desire to eliminate all of their debts and start working/living from a position of financial strength. Only you can make that decision!
Jim Thornton is the right choice
I've been in the financial industry since 2002 and am a Financial Advisor in addition to being a Mortgage Broker. I talk to clients with the unique perspective of not only getting a mortgage funded but also seeing how that mortgage solution will improve their total financial picture.
If you have $20,000 or more in debt, are paying your bills on time and have the equity in your home, call me toll free at 1-866-257-0158.