If you're currently struggling with post-holiday debt, you're not alone. Many households find themselves in a similar situation after the season of giving. But, don't worry! There is a solution to help you simplify your payments and reduce them. Consolidating other forms of debt into your mortgage can be the perfect solution for you. By rolling your debt into your mortgage, you'll be able to pay off your loans over a longer period of time with smaller payments per month, and often at a reduced interest rate when compared to a credit card.
For example, if you have $30,000 of credit card debt, you are probably paying AT LEAST $600 per month and $500 per month of that is likely going directly to interest. But, by consolidating that debt into your home equity and monthly mortgage, your payment to this $30,000 portion would drop down around $175 per month, with interest charges closer to $140 per month. That's a huge savings!
Not only will consolidating your debt into your mortgage help you reduce interest charges and make your loan more manageable, but it is also much easier to keep track of and pay a single monthly installment versus managing a dozen different loans or bills. Keep in mind, you need at least 20 percent equity in your home to qualify for this adjustment.
If you're looking for a way to simplify or get out of debt, reach out to us today, scott@thewestlaketeam.com. Our team would be happy to take a look at your financial portfolio and current mortgage(s), and help you come up with the best option to suit your needs. Don't let post-holiday debt hold you back, consolidate today!