Is credit card interest interfering with your ability to move forward with your financial goals? If so, there are strategies that could keep you from falling further into debt as we enter another unpredictable year.
Debt Comes and Goes – Help it Move Along Faster!
There’s no doubt that 2020 has been challenging for some people. Time off work due to COVID-19 has built a lot of financial pressure, and in 2021, many people need to engage new strategies to manage their debt burdens. Canada is leading the world in debt of all kinds, including household debt.
There is good news for homeowners with some equity built up in their homes; it is possible to leverage that equity against your debt to set yourself up for increased financial success in 2021.
Using Your Home’s Equity to Manage Debt
Depending on the type of debt you have accumulated, a home equity loan or line of credit may reduce your overall interest burden for repaying debt. This is especially true if your debt is carried on credit cards and you are making minimum payments. In this type of situation, you probably need some relief in order to get your head above water.
A home equity loan borrows against the equity you’ve built in your house. The main advantage a home equity loan offers is the ability to take advantage of low interest rates. And, with interest rates currently lower than ever, this can result in significant savings.
Debt Shuffling Strategies Designed for Your Needs
If the idea of using your home’s equity to shuffle debt sounds complex to you, you’re not alone. In some cases, this is the best strategy, while in others, we may have other available options for debt management. If you believe a home equity loan may be right to help you restructure your debt, reach out so we can crunch the numbers together!