debt
Ghummaz Bhatti

Ghummaz Bhatti

Options You Can Take to Consolidate Your Debt in Canada

When you are paying off a lot of debts, it can quickly get overwhelming. When you consolidate your debt, you can make things more manageable by getting rid of multiple debts and having just one loan to think about instead. This can be very helpful when you need fewer things to keep track of and want to streamline the recurring date of your repayments.

So, let’s talk about the various options you have for debt consolidation in Canada.

Mortgage Refinancing

One option is to refinance your home. A mortgage refinance is basically like paying off your debt but with cheaper interest rates and extending the overall loan duration.

The process can be a little tricky as you will be required to pay a fee every month and pay for a new appraisal for your home to make sure that the value is still high. Plus, you will only be able to get money against the equity that your home has.

Of course, you can find the lowest refinance rates in Ottawa so that you don’t need to pay out too much in fees.

Debt Consolidation Loans

If you are looking for a longer-term way to pay off your debt, you can apply for a consolidation loan to pay off your debt. The main draw for this option is being able to pay off your loan in much smaller payments over a longer duration of time.

The best debt consolidation loans have reasonable interest rates and allow you to pay your debts off more quickly. This is because you don’t have multiple lenders and interest rates to think about and can simply pay off one larger sum.

Overdrafts

You can ask your bank to provide an overdraft or line of credit. This entails getting a bank loan for a set period that gives you a limit of spending. Whatever you spend, you pay back with interest.

It’s helpful if you need a quick source of cash flow and have to pay off various loans. However, it can be a high-cost option with interest rates, and it’s not as easy to find a lender that will give a fully secure line these days.

Debt Settlement

Debt settlement is a viable option but is not always a possible choice. Should you succeed with a settlement, you should be able to negotiate a payment plan with your lenders and reduce the total amount you owe.

You give a certain amount as repayment and then have the rest of the balance waived or reduced. This is mostly dependent on whether or not your lenders agree and if you have some money to pay them back partially.

Bankruptcy

Filing for bankruptcy is generally a last resort, but it can be an option if there are no other means to consolidate your debt. When you file for bankruptcy, you will no longer be legally required to pay off your existing debts. It’s basically a clean slate.

Final Thoughts

While there are other options out there like credit cards and management programs, they may not be as helpful to your situation if you are already swamped. Plus, using credit cards and the like can end up doing more harm than good when you miss payments. In the end, it’s up to you to recognize which method will work best for your situation.

Looking for private lenders in Ottawa? Look no further than Ottawa Mortgage Services. We specialize in debt consolidation, pre-approvals, and refinancing. Get in touch with us today!

Contact Ottawa Mortgage Services to learn more

funding@ottawamortgageservices.ca

Like & Share on Instagram & Facebook

@ottawamortgageservices

Get Started, sign up and fill out the application: Click Here

Share this post

Related Articles

Mortgage

Getting Mortgage Approvals for Self-Employed Professionals

Freelancers and self-employed individuals experience challenges not only in finding steady income sources but also in acquiring home loans. Unfortunately, even those with steady businesses and clients failed to secure their own homes for the same reason: they do not have the W-2 tax form that shows the amount of

Read More
woman with laptop

How Can Your Mortgage Get Denied After Pre-Approval?

The pre-approval stage is a necessary step before you can secure a mortgage. This is why homeowners shopping for different lenders get pre-approved for numerous loans before settling down on the right one for them. While the pre-approval period can last from 90 to 120 days, it’s important to remember

Read More
Mortgage

Mortgage Prequalification vs Pre-Approval: What’s the Difference?

The home buying journey can seem quite simple, but it is important to understand the process and the terminology used along the way. By becoming more familiar with the mortgage home-buying process, you can purchase the home of your dreams, using the correct terminology and getting the best interest rates

Read More
Shopping Basket