Debt Consolidation

Debt consolidation is when you take out a loan to pay off several loans and consolidate the monthly loans into one payment.

Some people will do this by taking out a second mortgage on their home and cash out the equity they have built up. Another option is take out a signature loan, or unsecured loan, to consolidate the debt. Although the interest rate may be slightly higher, it does reduce the risk of losing your home.

Benefits

• Simplify your short-term debt position
• Make payments more manageable
• Use your house equity to access lower interest rates and pay debt off more quickly
• Access lower unsecured loan interest rates
• Advice on structuring short-term debt to improve your overall finance position