Bankruptcy and consumer proposal are not the only options.
Many families may face budget challenges due to the amount of debt they carry. These could be mortgages, credit cards, lines of credit, car loans, and student debt. at times, it may seem that Bankruptcy or Consumer Proposal are the only way out from under the debt.
Both will drastically drop your credit score, report on your credit for 6 years after payout, and make obtaining credit extremely difficult. As a mortgage broker, I have access to many alternative solutions that can provide a light at the end of the tunnel and reduce monthly debt payments, including:
Refinancing your mortgage to restructure payments as interests only.
Vehical Loans - Restructuring or assessing the value.
Consolidating debt using home equity up to 100% LTV.
Obtaining a reverse mortgage with no payments*.
Secured or unsecured personal loans.
Negotiating Debt Repayments.
I'm here to help you achieve your short- and long-term financial goals and will be with you through every steps of the process. Let me help you get back on track! Contact me to discuss your solution.
Here is an example of "Lowering Debt Payments."
We had a client who had a 2012 Ford F150 that was paying $800/month. The client also had a 2012 trailer paying $810/month. The client wanted to maximize lowering these payments, to minimize the effects of his mortgage renewal and with these payments going up $451/month.
We had the lender do an umbrella loan, which allowed us to pay out the vehicle loan by doing a cash-back loan on the trailer that covered the balance of the vehicle. The trailer had enough equity in it to do this. We amortized the new loan on the trailer to 20 years. By doing a new loan on the trailer that covered the vehicle loan being paid out and refinancing the trailer. The new payment was $690/month compared to the $1610 per month combined they were paying. The umbrella loan was a key tool since without it, we wouldn't have been able to payout the vehicle on its own because of its age. Vehicles year 2016 or newer would not need an umbrella loan.
We were able to save the client $920/month in payments. In this case, even after considering the increased mortgage renewal monthly payments, we still saved the client $469/month.
This is a creative way we help our clients maximize their savings. Knowing about all of the client's assets is what triggered us to look at this great savings opportunity for them.