The Money Management
Using a mortgage to manage your
debt and improve your credit
What if there were a magic card that you could carry with you, with the
power to open doors you all over the world? A good credit rating is a
little like that- a passport to financial opportunities. The other hand,
a poor credit rating can be a terrible obstacle, and repairing your credit
is often a slow and difficult process.
Perhaps you've maximized your credit cards - and maybe have a short-term
loan or line of credit addition to your regular mortgage payments. Under
these circumstances, the cost of servicing those debts is an obstacle
to correcting the problem, and you may be now considered a high
risk' borrower, even if you are somehow managing to make your payments
each month. Your overall payment history is satisfactory, but your debt
load is heavy.
You may not have considered using a mortgage to refinance and manage
your debts, but there are some significant advantages. As a homeowner,
you can have access to a lower overall borrowing rate. A house is considered
very reliable security, so mortgages often offer the best rates available.
In addition, your credit history enjoys an almost immediate boost, as
you begin to make your monthly payments. There are many innovative mortgage
options available today, including a mortgage products that has been designed
specifically as a credit repair tool - Call your lender or a mortgage
broker to search out the best solution suited to your circumstances. Moreover,
if the reason your credit is under pressure, use the event as a positive
warning and review your financial arrangements and budgeting process.
For homeowners who are trying to distance themselves from there past
credit problem You probably already know that it makes sense to consolidate
your debt into one payment. You can generally enjoy substantial savings
on interest charges; you have a more manageable monthly payment and better
monthly cash flow. Consider how a new mortgage can help you manage your
debts - so make it a goal this year to improve your credit rating.
* * *
||Use this link to load a printer-friendly
version of this document.
Have a question regarding
this article? Use our feedback form
to send us a note.
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.