We recently helped John and Katrina with a debt consolidation refinance on their home. John was trying to get his business off the ground and had incurred a ton of unsecured debt by doing so. With marketing expenses, travel costs and lawyers fees for the business at almost $30,000 and lack of income due to Katrina being off work, they incurred more than $65,000 worth of unsecured debt on credit cards and loans. They purchased their property in Vancouver, BC in early 2008 and opted for the Variable Rate Mortgage at that time at a rate of Prime plus .80% (which was a great rate at that time), with equity built up in the home and available Variable Rate Mortgages today at Prime minus .70% or more – the refinance made sense.

This was their situation before the refinance:
Monthly Mortgage Payment – $2,035.00
Monthly Visa #1 – $ 313.00
Monthly Line of Credit #1 – $ 529.00
Monthly Line of Credit #2 – $ 690.00
Monthly Line of Credit #3 – $ 250.00
Automobile Loan Payment – $ 490.00
Total Monthly Payments – $4,307.00

By refinancing their mortgage and increasing the loan amount by $70,000 to pay off all their bills and consolidating into One Low Payment, we managed to bring down their monthly obligation to $1,935.00. That’s a monthly savings of $2,372.00! Our clients are now using their monthly savings towards further reducing their principal balance on their mortgage by taking advantage of the pre-payment options available through the lender we placed them with. Congratulations John & Katrina!

If you or someone you know is a home owner struggling with unsecured debt and high interest loans, please Contact Us for a FREE Debt Consolidation Consultation. We look forward to helping you save a ton of money each month!