Let’s Talk About the Elephant in the Room
Bad credit is no laughing matter. The never-ending calls from Debt Collectors. The sleepless nights. The bills piling up. If you are experiencing this what you need to know is that there is help, and that you can fix your credit, but you have to take swift and decisive action to address the problem.
At the Money Depot we know that bad things happen to good people, and just because you are currently experiencing a tough time financially doesn’t make you a bad person. We’ve been there, we understand. We can can help!
- Increase you credit rating and decrease your stress level
- Lower your interest rate and pay off your bills
- Stop the annoying calls from debt collectors
- We can have cash to you within 72 hours
You Are More than Your Credit Score
How to Use Your Home to Rebuild Your Credit?
You can use your home to fix your credit. Yes, if you own your home you can leverage the equity in your home to pay off debts and fix your credit. We answer the question of “what is home equity?” in the next section of this page. Home equity can be accessed in a number of ways, using a variety of financial products including a HELOC (Home Equity Line of Credit) or by refinancing or even getting a second mortgage.
It may sound strange to suggest taking on new debt to help you out of old debt, but here’s why this is a good idea, and how it works. If you have credit that is piling up, or unpaid bills, or even if you’re living on your credit cards, then you are paying a very high interest rate to continue owing this money. Your creditors will continue charging you interest, on interest, until they receive payment and the total debt will continue to spiral further and further out of reach. Clearing that debt by transferring it to a loan that has a lower interest rate will help make these payments more affordable.
How do you get a loan with a lower interest rate? Generally high-interest debt is “unsecured credit” meaning it doesn’t have any collateral to ensure you pay the loan. By leveraging the equity in your home, you can get a much lower interest rate loan secured by your home, not your future earnings. This is a great way to solve your short-term debt and fix your credit score over time.
What Is Home Equity and How Can It Help Me Fix My Credit?
Your financing comes from your home’s equity. Your home equity is simply the amount you owe on your mortgage subtracted from your home value. This amount gets larger with each mortgage payment that you make. For instance, if your home is currently worth $500,000, and you have $150,000 left to pay back on your mortgage, then your home equity would be $350,000. As you decrease your mortgage debt, you increase your equity. Keep in mind that housing costs are also rising, which positively affects your equity.
You can access your home equity three ways: refinance your mortgage, take out a second mortgage, or get a home equity line of credit (HELOC). You can find out more about these financial products here.
Why Use The Money Depot?
The Money Depot has been Canada’s go-to source for loans since 2009 and we have been in the business of lending money to Canadians since 1999. We work with dozens lenders across the country to help take the stress out of refinancing, and getting access to affordable loans by allowing consumers to get multiple offers from several lenders in a matter of minutes. We get Lenders competing for your business. If you’re tired of hearing no from the banks then get in touch with us! We say “Yes” more often
At The Money Depot, we care about our clients and treat you like individuals. We realize that everyone’s financial circumstances are unique, and we get to know each and every one of them. You are not just a name on a piece of paper, or a number at a bank; you are a person.
Although our loans are short-term solutions to your financial needs, we will work with you to ensure you have a long-term plan. With a loan from The Money Depot, you will be able to address your current issues while you work to improve you credit score, increase your income, and find a more permanent solution. We know what you are going through and are here to help you get on with your life. No need to be embarrassed or feel awkward; you are not the only one that has ever been in this situation. Kick the elephant to the curb and call us for a consultation today.