Chat with us, powered by LiveChat
  • Own your Home? We can help!

Close

The Best Way to Consolidate Debt

Many people find themselves taking on too much debt. Between credit cards, loans, and mortgages, it’s very easy to find yourself in this situation. When you do, you may wonder about the best way to consolidate debt.

The best option for debt consolidation will depend, of course, on the kind of debt you have and its balance.

For example, many Canadians find themselves struggling with credit card debt. The best way to consolidate debt of this variety is to seek a lower-interest option. This can save you hundreds – or even thousands – of dollars in the long run.

Keep reading to learn more, including how Alpine Credits can help you find the best way to consolidate debt.

Why Consolidate Debt?

Someone filling out Debt Consolidation Loan Application Form.

Consolidating debt is the best way to manage your finances because instead of making multiple payments at different interest rates on different payment cycles, you can make one simple monthly payment, likely at a lower interest rate. This is especially useful when finding the best way to consolidate debt such as credit card balances or multiple mortgages. Putting all of your debt onto one low-interest monthly payment is the best way to save some money.

By combining several payments into one, you will be able to save money in the short-term. It also provides a way to keep on top of your payments without falling behind helping you maintain a good credit history. Many vendors have extra fees that are added to your debt when you overdraft your account or miss a payment as well. You’ll avoid incurring those fees with the right debt consolidation strategy.

As such, combining debt is the best option for those who need help managing multiple monthly payments with high-interest loans.

The Basics of Consolidating Debt

Many people think that the best way to consolidate any debt is to put all of the debt on one loan and pay that off. However, this can be difficult because these loans can be high-interest, and missing a payment can have severe consequences. Alpine Credits has been helping homeowners consolidate their debts and achieve financial freedom for over 50 years.

The Best Way to Consolidate Credit Card Debt

Many people have multiple credit cards now and racking up a credit card debt is easy. The best way to consolidate credit card debt usually involves putting all of the debt on one loan and make one monthly payment instead of multiple monthly payments. You can consolidate credit card debt by putting it on a home equity loan. This makes it easier to budget since you will only be making one monthly payment sometimes at a lower interest rate. Alpine Credits can help you achieve your financial goals.

This will help you plan for getting out of debt faster. While always making the minimum payments on time will help you get out of debt, the best way to consolidate debt is to combine the debt into one monthly payment.

The best action to take to ensure that you don’t need to find the best way to consolidate credit card debt is to make sure that your credit card debt doesn’t get too high. By making payments on time and never using too many cards at once, you can avoid needing to find a way to consolidate credit card debt.

If it’s too late, however, the best approach to consolidating credit card debt is to combine your balances using a low-interest loan, such as a second mortgage.

The Best Way to Consolidate Mortgage Debt

Real estate in Canada is always peaking and purchasing a property can often be an expensive decision. When mortgage payments get to be too much for you to make every month, you may ask yourself what is the best way to consolidate debt?

Taking out another loan to pay off the first one may not be the best idea. A great way to consolidate mortgage debt is to take out a home equity loan. This is also a good option for home repairs or for handling other large expenses, like college tuition. Home equity loans take the current equity of your home to make a second mortgage on your house. Home equity loans tap into what you have already paid on the mortgage to get one lump-sum to make payments on the house. The first mortgage remains the primary loan on the house. When financing for a home equity loan, you are limited to 85% equity of your home. The loan amount will depend on your income, credit history, and market value.

The best debt consolidation option will heavily depend on the kind of debt that you want to consolidate. If you’re a homeowner, contact us at Alpine Credits and we can discuss your options.

To summarize, a home equity loan is the best way to consolidate most types of debt. It uses the equity you already have on your house to provide a new loan that is offered at a monthly, low-interest payment. This kind of consolidation is not only a good choice for consolidating mortgages, but also providing options for people wanting to finance a home renovation or college tuition.

Whatever way you find is the best way to consolidate debt, it will help you complete your payments faster and easier. Many people find that managing one monthly payment is easier than having multiple payments that they need to pay.

At Alpine Credits, Homeowners get Approved.

Apply today or call (1-800-587-2161) to find out how much you can qualify for.

Frequently Asked Questions

Under the right circumstances, consolidating debt can be a tremendous decision. It can leave you with a single manageable monthly payment and significantly reduce the amount of interest you owe.

The high interest rates on unsecured personal loans make them less-than-optimal for Canadians with other options. A secured home equity loan, on the other hand, is flexible and may come in at a much lower interest rate than your credit card or other unsecured forms of borrowing.

Debt consolidation essentially amounts to a loan you use to pay off multiple balances. It’s essential that you choose the right type of loan for this. An unsecured personal loan will come with a high interest rate, reducing the efficiency of your debt consolidation strategy. If that loan is revolving, you also run the risk of working against yourself by continuing to rack up a balance even as you pay.

Many Canadians find it preferable to use secured installment loans, such as home equity loans, for consolidating debt.

If you’re cash poor, you can tap into substantial assets like your home to consolidate debt. You’ll then simply need to repay the home equity loan rather than multiple high-interest debts.