Overwhelmed by debt? Restructuring what you owe can help

Are you feeling overwhelmed by debt? Whether it’s credit card bills, personal loans, or other financial obligations weighing you down, debt restructuring could be the solution you need. As a mortgage broker, I’ve helped many clients in similar situations regain their financial footing. Here’s why having a plan for debt restructuring can be helpful:

1. Lower interest rates

One of the benefits of debt restructuring is the potential to lower your interest rates. By consolidating your debts into a single loan, such as your mortgage, you could significantly reduce the amount of interest you pay on a monthly basis. A refinanced mortgage typically has a much lower interest rate than unsecured debt such as credit cards.

2. Improved cash flow

Many of us are carrying consumer debt from several sources. Monthly payments for credit cards, car loans, personal loans, and student loans can add up to a truly unmanageable amount. This can be especially frustrating when you look at the credit card minimum payment, which can add up to 1/3 of the original amount you borrowed each year. Restructuring and refinancing your debt into your mortgage give you financial breathing room. Having more money each month to cover your essential expenses or unexpected needs can feel like a lifesaver.

3. Getting rid of your debt

A well thought-out debt restructuring plan can set you up for success, because at the end of the amortization period, your total debt is zero. With revolving credit – such as credit cards – you may be paying a lot in interest without ever attacking the principal.

4. Peace of mind

Perhaps the most significant benefit of debt restructuring is the peace of mind that comes with having a plan. Instead of feeling overwhelmed by multiple creditors and mounting bills, you can take control of your financial situation and work towards a debt-free future.

Let’s chat

If you’re considering debt restructuring, it’s essential to work with a qualified professional who can help you develop a plan tailored to your unique financial situation. As a mortgage broker, I have the knowledge and expertise to guide you through the process and help you achieve your financial goals. Contact me to discuss how debt restructuring might help you.

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