debt consolidation, increase cash flow, high interest debt

Wouldn’t spring cleaning be so much more gratifying if – somewhere under dusty barbecue parts and outgrown hockey skates – you found an envelope with, say, $5,000 in cash? Wouldn’t that make spring cleaning worthwhile? Of course it would!

Well, you may not uncover a financial windfall when you’re cleaning the garage this spring, but if you are continuously carrying a large amount of high interest debt, a little time and attention to the task of spring cleaning that financial clutter can be very rewarding.

Are you continuously carrying a large monthly balance on your credit cards? This kind of financial clutter can be very costly. You have a golden opportunity right now to give yourself a tremendous financial boost. By rolling your high-interest debt into a low-rate mortgage, you can reduce the number of payments you’re making each month, save big on interest costs, and greatly improve your monthly cash flow. You can start building wealth by funneling some of that cash flow back into your mortgage, or by investing in RRSPs, TFSAs, or RESPs.

Worried about penalties? Don’t think it can make much difference? Think again. If you have enough equity in your home (you can’t refinance a mortgage above an 80 per cent loan to value), it’s worth taking the time to have your situation reviewed to see if you can benefit. Here’s an example – mortgage, car loan and credit cards total $225,000. Roll that debt into a new $233,000 mortgage, including a fee to break the existing mortgage, and look at the payoff:

example of debt reduction, mortgage refinance

That’s a $956 improvement in cash flow each month!

If your cash flow has slowed to a trickle because of your debt, I can analyze your situation and outline your spring cleaning options!

home ownership

 

*4.5% current mortgage, 3.5% new mortgage, 25 year am. Credit cards 19.5% and car loan 7%, both at 5 year am. OAC. Subject to change. For illustration purposes only.
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