Consolidate Debt Loans – The Smart Way!

When you refinance your home you have lots of different options in how you want to proceed with debt consolidation.  You might want to consider rolling high interest credit card debt into your refinance loan as a way to save money.

According to the Bank of Canada, Canadians owe in excess of $750 billion, which means that if it gets paid off by making the minimum monthly payment, Canadians will have collectively spent more than $1 trillion in high interest payments.  Now that’s a lot of pizza!

If you roll your high interest credit card debt into your home refinance loan, not only do you cut the interest rate, you save money and you make it easier to crawl out of debt more quickly, because it’s very difficult to cut through debt when you are shrouded in plastic.

I want to warn you, however…

It doesn’t do you any good to pay off all your credit cards with a home refinance loan unless you cut the cards into little bitty pieces and mail them back to the credit card company with a thank you note.  It doesn’t need to be a long note. A short one will do. And I’m sure they’ll get the point.

If you don’t get rid of the plastic, you can run the risk of jumping into the same money pit one easy payment at a time.  Smart refinancing includes making smart choices – now and in the future.  How many credit cards can you eliminate by refinancing smart?

All the best,

Darrin Roseborsky

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