Pay Off Holiday Purchases!!
Strategies to Pay Off Holiday Purchases
With holiday purchases – a lot of them put on plastic – soon coming due, many Canadians are sorting through bills and realizing that they have too much high-interest credit card debt. This new year, consider taking charge of borrowing costs by paying off higher-interest consumer debt with funds secured through mortgage financing.
A common mortgage option for consumers which offers flexibility is a Home Equity Line of Credit – or HELOC – which allows you withdraw funds as needed for a set period. The real benefit is that you can put a HELOC in place for a one-time cost and charge up then pay down the line of credit many times over, never needing to re-qualify. Your payments fluctuate depending on current interest rates and the outstanding balance over the month. A HELOC can be convenient for paying off higher interest debts, as you withdraw and pay (relatively lower) interest on only what you need.
Mortgage refinancing also offers a plan to reduce your debt – after the agreed upon amortization period, your balance is zero. With HELOCs, after the set draw period, there may be an amortization period during which any outstanding amount is repaid. In contrast, with revolving credit – such as credit cards – you may be paying a lot in interest without ever reducing the principal.
You may be surprised to learn how much you can save with a debt consolidation strategy. I can offer expert advice on smart ways to manage your debt. Access your options today!
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