Top 3 debt consolidation situations:
Debt Consolidation Situation # 1:
Recently, I met a couple in their sixties, the customers were struggling with a problem of progressive indebtedness, as far as credit cards are concerned. Their credit rating was low and Madame had just started a new job. The situation was starting to be critical and customers needed the help of a good mortgage broker.
Here is a “topo” of the customers’ financial situation:
-35 000 $ of debts spread over 8 different credit cards, rate of 19% and more.
-Mortgage loan of $ 115,000
-Value of the house: $ 220,000
Because of their low credit, I opted for a private lender and I was able to get them a 15% rate to collect credit card debt.
In short, the “game plan” will be to refinance the two mortgages together within 1 year, the time that the credit rating of customers increases. I will therefore contact clients regularly to “coach” them to ensure that their file is approved as soon as possible to a plan A bank.
SAVINGS customers: Potentially very high
2nd situation showing the usefulness of a debt consolidation:
Some clients are not aware of the different options available to them when it comes time to renew their mortgage . In short, this is an extremely economical situation, a specific case of debt consolidation and mortgage refinancing .
Here are the details of the debts of my clients:
Mortgage Loan # 1: $ 160,000 at a rate of 3.69%
-Mortgage Loan # 2: $ 21,000 at a rate of 19%
-Credit Cards: A total of $ 24,000 card at 15% and over
Monthly payments from clients were approximately $ 2,500 per month. They were required to renew their mortgage so they had no penalty for transferring to another bank. Good news, I managed to collect all the debts together at 2.55% variable rate 5 years and finally the customers were able to save over $ 1000 a month on their old payments.
SAVINGS customers: $ 1000 per month
Save money through debt consolidation
I met a client 1 year ago, sir was struggling with a 1st rank mortgage at the rate of 10%, for a total amount of $ 75,000. Knowing that the rates of the day are about 3%, we can quickly see that sir is paying too much for his loan. In addition, Mr. had delays on municipal taxes and he owed taxes to the government. In short, a very difficult situation and especially hyper stressing.
I worked extremely hard to get a new loan approved for a plan A bank, and I succeeded. Finally, the customer got a fixed rate of 2.79% 5 years and I managed to update the taxes of the house as well as the taxes