The holidays are a season of giving, and households can often carry some extra debts as we enter the New Year.

Many struggles with some post-holiday debts. Whether you have accumulated multiple points of debt from credit cards or are dealing with other loans (such as car loans, personal loans, etc.), you are likely looking for a way to simplify your payments and reduce them. Rolling them into your mortgage could be the perfect solution.

Consolidating other forms of debt into your mortgage has multiple benefits. This process can help you pay off your loans with smaller monthly payments over an extended period and often at a reduced interest rate compared to a credit card.

You will have better monthly cash flow if you free yourself from these high-interest rates and gouging interest payments. You also have a better chance of regaining financial control and getting your loans paid off completely.

If you are still uncertain if this is the right solution for you, here is an example: If you have $30,000 of credit card debt, you are probably paying at least $600 per month, and $500 of that is likely going directly to the interest. If you roll that debt into your home equity and monthly mortgage, your payment to this $30,000 portion will decrease to around $175 per month, with interest charges closer to $140 per month. That is huge in interest saving.

Debt consolidation into your mortgage can help reduce interest charges and make your loan more manageable. It is much easier to keep track of and pay a single monthly instalment versus managing a dozen different loans or bills.

While debt consolidation through refinancing will increase your mortgage amount, the many benefits of lowering your overall payments and managing your debt can be well worth it when it comes to cost savings, time, and stress. Lastly, you will need at least 20% equity in your home to qualify for this adjustment.

Contact me if you want to simplify or get out of debt! I would be happy to visit your financial portfolio and current mortgage and help you find the best option to suit your needs.

Have you got New Year Resolutions for your finances in 2023? Consider these great ideas to make your home feel brand new come January:

Purge Your Space

The beginning of the year will be a perfect time to purge your home. While cleaning your home is common around the holidays, purging takes that a step further. Make it part of your New Year’s resolution to purge your home of things you don’t need. Look around your home and catalog those items you didn’t use in 2022 (or 2021!) and make it your resolution to get rid of them.

Donate What You Can

Following up on purging your home, this is a great time to donate old items. Make two piles – one for garbage and one for items to donate. During this time of year, those in need can use your help the most. Thus, while you’re purging, reconsider tossing out old items and instead donate them to someone who would benefit.

Make Sure You Are Safe & Sound

A clean house is only half the battle – you also need a safe one! While your home will look fresh and organized after you’ve finished purging old items from the year, you will want to put some effort into ensuring safety. Check fire detectors and fireplaces, and investigate radon and carbon monoxide (the hardware for these tests is not particularly expensive). It is also a perfect time to check ventilation as well!

Shrink Your Bills (and Your Carbon Footprint)

Some people think the only way to “go green” these days is buying a hybrid car – but your home is a great place to cut energy too! You can start by switching off the lights when you leave a room, dialing down your air conditioner and heating, and installing LED bulbs and energy-saving showerheads or toilets. These can help you save in the long run and ensure your home is more energy efficient for the New Year! 

Plan Out Home Improvement Projects

Heading into the New Year is a fun time to plan future home improvement projects. These don’t have to be on the docket for 2023, and it is a great time to re-evaluate your home for any changes or additions you want to make in the coming years.