If you are starting to feel the weight of financial debt, take heart, you are not alone. In Canada, Consumer debt is on the rise and about 80 to 87 percent of that is mortgage debt. Homeowners that are most affected are in Ontario, British Columbia and Alberta where house prices have escalated.

Are feeling overwhelmed by debt? Sometimes we don’t consciously recognize we have debt problems, but at times can feel a gnawing feeling of being afraid or a general angst.   Even if we are aware of an issue with debt, it can be a tough thing to admit, let alone get help.  At times it’s due to knowing something needs to change, we are embarrassed, acknowledging it makes it real, or at times just have no idea what to do about it.

 

How to Start Taking Control and Managing Your Debt

  • First you need to honestly ask yourself if your debt has become a problem.
  • Review all your monthly payments, credit cards and bills. See if there is any savings either by downgrading or eliminating services or see if you can negotiate lower credit card interest rates.
  • Review your mortgage and mortgage rates.   Can you lock in a better mortgage rate, renegotiate a better rate or renew with another lender who provides better rates?

If you have not already done so, get a copy of your credit report. If you’re report is not favourable, start working to better your credit score.

Equifax Canada
www.equifax.ca
1-800-465-7166
TransUnion Canada
www.tuc.ca
1-866-525-0262

Taking charge of your finances will make you feel better — you’ll have less worry and anxiety.

 

Bite the Bullet – Start Looking at Options

  • Stop Unnecessary Spending – Look at your spending habits, ask yourself if you really need the purchase and determine what is a need and what is a want. Ask yourself is it better to have that item, or have the freedom of worry from debt. If you stop needless purchases and start seeing positive results by lowering debt, you’ll be motivated to plan your purchases more carefully.
  • You May Need to Consider Downsizing – If you have reviewed your finances and find yourself in over your head, you might want to consider selling your home and downsizing. Not an easy decision, but you may be pleasantly surprised at what is available. Even if you start to do some research and look at options, you can be proactive in taking control of your debt should it not become a choice.

 

How Island Mortgage Can Help

The Mortgage Experts at Island Mortgage want you to enjoy your home, free from the stress and worry debt can bring. We have options that may be available to you or can help point you in the right direction. If you just need to know what options are available or need expert mortgage advice; we can help. If you are considering refinancing, want to renew with us for a better mortgage product and rate, have built equity in your home, looking to downsize and wonder how much you can save or need to have available ready cash for emergencies – whatever be your need – we have the knowledge, products and experience. Contact the mortgage brokers at Island Mortgage today.