This has been an extraordinarily tough year for Canadians, and due to unforeseen life circumstances, many people may have found themselves carrying higher balances on their credit cards or having too many credit products to manage comfortably. As we start a new year, it’s important to gain control over your finances and set yourself on the path to achieving your financial goals.

 At Tribecca Finance, we specialize in helping people in just this type of situation. We find that a debt management strategy that includes a debt consolidation loan is often the best way to get a handle on your debt and regain control over your financial situation. 

 Read on below to learn more about how debt consolidation loans work, and how taking out a second mortgage might be the right debt management plan to accomplish your goals!

What Makes Debt Consolidation Necessary?

You may have found yourself in a situation where you are unable to manage your monthly expenses. This can sometimes lead to falling into an unsustainable debt spiral and it can become difficult to see how you can get yourself out of your current situation. Unless you can substantially boost your income, it’s important to look for ways to lower your expenses, which may require finding ways to lower your monthly expenses, getting serious about money management, and finding debt relief options that will allow you to reduce your debt burden over time.

What is Debt Consolidation?

Debt consolidation is exactly what it sounds like – taking your various debt obligations and amalgamating them into one affordable monthly payment. Debt consolidation can make your financial life a lot easier by helping you reorganize and refinance your current levels of debt. This loan can come in many forms, and one of the most popular is through a second mortgage.

This strategy is available to those that own a property. So, if you do own a home with a mortgage, you can use the home equity you’ve built up as collateral against a loan. 

The equity in your home, unlocked by the second mortgage, can then be used to pay off all of your high-interest bills and credit cards at once, helping you get out of debt and leaving you with only a single, affordable monthly payment, instead of many monthly payments to a variety of creditors. 

What are some Advantages to Debt Consolidation?

Many Canadians make numerous monthly payments (e.g. Credit cards, car payments, personal loans, lines of credit) to a variety of different creditors. It can be difficult to keep track of all of these outstanding bills with varying interest rates and amounts owing. With a debt consolidation loan, you are able to consolidate your debt into a single monthly payment which can help simplify and organize your finances.

When using a second mortgage to consolidate your debt, you’ll find yourself with lower interest rates than many credit cards. After all, why pay a 20% interest rate to credit card companies when you can cut that interest rate in half, or even better?

 A direct result of a lower interest rate is a lower monthly payment, and even the complete elimination of a worrisome credit card balance in a short amount of time. Along with a smaller monthly payment, debt consolidation can also reduce your stress, making your finances easier to manage and plan out.  

 Additionally, using a second mortgage as your debt consolidation loan can help you pay off your debt faster and work to rebuild your credit score. Falling behind on payments and having a large debt load will damage your credit score. By consolidating your debt, you can deal with both of these factors by creating a manageable monthly payment schedule. This is why consolidating your debt can be a great management plan for so many people.

What is the Advantage of Using an Alternative Lender?

Alternative lenders in Ontario meet an important need by providing residents with access to capital when they may otherwise have difficulty in doing so. Besides the obvious benefit of using an alternative lender (getting the cash you need to pay off all your high-interest debt at once and replacing your multiple bills with a single, lower monthly payment), Ontarians choose alternative lenders like Tribecca because:

 Fast and dedicated service

  • A speedy and streamlined application process
  • Flexible lending guidelines
  • Customized loan solutions that meet a borrower’s specific needs
  • Quick approvals and access to funds
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Getting in touch with an experienced lending specialist is a good place to start. They will help you make the best determination about how working with a reputable alternative lender can make a difference in your life.

Tribeca Can Help You Consolidate Your  Loans With a Second Mortgage

 If you’re looking to improve your financial situation and simplify your debt obligations, a debt consolidation loan could be the right solution. At Tribecca Finance, we’ve helped thousands of our customers achieve their financial goals for decades. We can offer the best second mortgage rates in Ontario and our friendly and professional lending specialists would love to work with you to create a strategy tailored to your unique circumstances. You can call us at (416) 225-6900 or apply for a loan online today.