Debt Consolidation Calculator – There’s Freedom In The Numbers

So you are browsing the web for a good Debt Consolidation Calculator but you feel lost in the financial complexity of it all. I understand where you are coming from. The answers provided from entering a few numbers seem promising. Then you actually reach out to the bank and not is all that it seemed online. It is comforting to know that there is a benefit to consolidating bad debt into a new loan – but how you go about it makes the difference between freedom and more financial woe in the future.

Cashflow Relief

The first aspect to address is getting your month to month cashflow moving into a positive position. Every calculator will show you the next illustration but how we implement the strategy will be the key to the success of it.

 

11 COUNTRY LANE

BALANCE

PAYMENT

Property Value (300K)

 

 

Mortgage (PRIME MINUS .80) 2.20%

$180,000

$864

Credit cards/Line of Credit

$40,000

$1,200

Car Loans

$9,000

$540

Totals

$229,000

$2,604

 

We take those high interest/high payment credit cards and car loans and refinance them into a lower monthly payment – secured debt of a mortgage against your home. This constitutes a Mortgage Refinance and you will see that even with a low interest rate of 2.2% on your first mortgage – that the relief is tangible.

 

11 COUNTRY LANE

BALANCE

PAYMENT

Property Value (300K)

 

 

Mortgage 3.99%

$229,000

$1,203

Credit cards/Line of Credit

$0,000

$000

Car Loans

$0,000

$000

Totals

$229,000

$1,203

 

The difference here is $1,400/month and is close to a mortgage payment in and of itself. Now you may balk at the thought of using your home equity toward paying off these debts rather than just hunkering down and working a third job to earn the extra money to get it done. The truth of the matter is that it is not as important in how you paid the loans off as how it effects your credit and even more important is what are you going to do with the extra cashflow.

Better Credit Bonus

Now that we have paid off the high credit limits on your credit cards and the car loan that was behind by a month – your credit will have a chance to breathe. When we are always using our credit to the maximum or missing payments – the stress will cost us real dollars over time. A big benefit of completing a Simple Debt Consolidation is that over the coming months your credit scores will rise and the opportunity to qualify for lower interest rates in the future is more likely. Learning how to manage your credit will ensure this comes true over time.

Freedom In The Numbers

So your average Canadian will take that $1,400 and begin to enjoy a lifestyle they can’t afford. But you aren’t like that. You know that this is an opportunity to get ahead in life and make a future for your family where there wasn’t one before – only a heap of high interest consumer debt. That money can begin to grow into much more than it would have had you not made the changes. Looking at your options – we learn that the typical annual return of an asset backed investor is 15% and that as your money begins to accumulate – we can use this knowledge to turn this into a nice nest egg for your retirement. On a new five year term – you can easily be sitting on 100K (1,400 X 60 months + interest earned) and be well on your way to the freedom that taking control of your financial future provides.

So the next time you use that fancy debt consolidation calculator – take a moment to think about the end result. You can just press reset on your debt or you can work with your friendly neighborhood Mortgage Broker and make a plan that significantly increases your monthly cashflow, improves your credit, and provides the potential to retire in style. The choice is yours – let’s get started by contacting me below.