If you are a person who is struggling with high interest consumer debt, then getting out of it might seem like and impossible to reach dream. And while it is true that getting out of debt can be a challenge, there are strategies that can help you get out of debt faster. One such strategy is something called Debt Consolidation. Contact Leverage Capital to get Debt Consolidation Pickering
If you do not own a home – or if you just haven’t built up enough equity in your home – another option for debt consolidation is an unsecured loan.
Another debt consolidation option that utilizes your home equity in something called a mortgage refinance. This option requires you to break your current mortgage and get a new, higher mortgage that covers the amount of your current mortgage plus gives you enough extra cash to pay off your other debts.
The closer that you are to your mortgage renewal date, the less of a penalty you will have to pay. For this reason, those who are fairly close to their mortgage renewal date tend to do better with a mortgage refinance, while those who have recently renewed their mortgage will do better with a second mortgage. If you are not sure which of these options makes more sense for you, you can ask your mortgage broker to run some calculations for you.
Because unsecured loans are considered riskier investments by lenders, this option is also the most expensive one in terms of interest. Nevertheless, if you have a lot of high interest consumer debt, even an unsecured debt consolidation loan can help save you a lot of money and help you to get out of debt faster.