How to refinance credit cards?
Most credit cards grant credit without having an estate as collateral, then, the risk offered by the borrower is high, as a consequence the interest rates are high too. Equity lines of credit require an estate as collateral, then the risk offered by the borrower is low, as a consequence the interest rates are also lower.
Equity line of credit loans function in a very similar way as a regular credit card, but the interest rates are substantially lower.
Let’s be clear if you have a high amount of credit card debt and you have equity in your home, you are choosing to pay an unnecessary amount of interests just for not being responsible and your family will miss much of that money that can be put to better use.
In Ontario, We are approaching or perhaps surpassing by now an average of non-mortgage debt of nearly $40,000. That is right, you are not alone when it comes to having a high soft debt that is costing you and your family a huge amount of dollars
The average credit card interest rate in Canada is 19%, and let’s remember that the compounding period is daily, So if you are in this average and owe right now $40,000 on your 19% interest rate credit card (s) and pay the minimum monthly payment of $665.00 here are your news, you will end up paying by the year 2233+, by then you would have paid in interests the total amount of $88,880.
If you refinance credit card debt with an equity line of credit and want to really pay off your debt you could end your debt in only 5 years paying an interest rate of 5.99% (actual starting rates available) annually compounded every six months with total payments of $771.76 paying only $6,305.71 of interest, and yes there are some small borrowing fees involved but you will save over $82,574 dollars on interest.
$82,574 dollars that you can better use for other projects
Try the debt calculator below to
You can also use the next mortgage calculator before submitting your information or calling to inquire
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