A message from the business manager on debt consolidation

As a person who has been in the financial industry for the past 40 some odd years, I have dealt with a lot of varied clients.

One of the first things I review with clients is the amount, and the type of debt they have accumulated over the years. I have found that too many of us have too many credit card and other assorted debt, and it is not uncommon for clients to have three or more credit cards, and often more if husband and wife.

This is especially the case with people who own homes and have steady jobs, and start out with good credit. These couples begin with one card, and then add an additional and so on because the companies approve these clients as they appear to be handling the debt loan. Unfortunately in a lot of cases, this does not last as we get over extended and comfortable with the loan we are offered. Rather than being able to pay off the cards each month, we end up just paying the minimal amounts each month. It is then that these clients come and see us at AAR Mortgage for assistance.

If the couple home owners, they might be able to consolidate these debts into a single loan that is more affordable for them as well as saving themselves a great deal of interest, given the high rates on the majority of these cards. This is what we call debt consolidation!

All of this will depend on several factors. This includes the stage as to where the couple’s credit rating is at, the incomes they have, and of course the amount of equity they have in their home. Most lenders like banks and credit unions have very specific guidelines for these loans and if you do not fit in the box, then the clients will not be approved.

The other alternative available to clients are the private lenders. They have more flexibility when financing a consolidation loan like this, and it offers the clients a good chance to get themselves into a more comfortable financial position. Do realize however, given that the clients will be considered as higher risks, that most of these lenders will be charging higher rates and fees than the mainstream institutions.

Therefore if you are in this position as a lot of people are, ask the right questions, be comfortable with the lending company and their associates, and they will help you so you don’t end up in the same position again!

Ray Evaniuk

Business Manager