Debt consolidation is the process of combining two or more debts into one. It should result in a single debt payment and lower total interest costs.
Below is an example of how consolidating your debt into one monthly mortgage payment can save you thousands every year.
|Credit Card Debt + Mortgage||Consolidation|
|Credit Card Debt||$47,000||0|
|Average Interest Rate||22%||0|
|Credit Monthly Payment (interest only)||$861.66||0|
|Interest Rate||2.45 %||2.45%|
|Monthly Mortgage Payment||$1,567.53||1757.72|
|Total Monthly Payment||$2,429.19||1757.72|
Aside from the monthly savings, you are also paying down the principal amount versus only interest month to month. You can use the extra money for a variety of things or put it right back into your mortgage to pay it down faster!
You can request a Free Home Valuation below to see what equity you have available to use in your home.