Episode 10  Transcript – Debt consolidation

Hello! You’ve got Jessi Johnson live. What I am going to talk about today is debt consolidation. One of the major benefits of combining all your debts either into a mortgage, whether it be a refinance on your existing mortgage or perhaps a line of credit, which I do suggest. That being an open mortgage essentially which is either secured against your house allowing you to have a lower interest at prime or unsecured which is generally two points higher. Right now prime is at 4.75% which means your line of credit would be 4.75% if it was secured on your home. Many people, myself believe it or not, are paying 18% or some people even more on their credit cards. I’m actually in the process of processing a line of credit on my own home and consolidating my credit cards, my car, I think my car’s only a couple points above prime, as well as a few other smaller debts. Now the benefit of a line of credit is that you can actually use that one line of credit to have all your debts, it could be your home mortgage, your credit cards or your cars, anything into one easy payment. It’s easy to track that one payment so you don’t miss any payments. It helps your credit. The rate is very low. Another big trick is you take your paycheck and automatically deposit that into your line of credit and you’ll find that you end up spending a lot less money and get yourself out of debt a lot faster and essentially paying far less interest cost. I do recommend consolidating debt and if you have any questions regarding that I can essentially look at your existing portfolio and make a number of suggestions. I will be having seminars in probably six months to a year based on just this concept allotting your credits based on your house. My name is Jessi Johnson and if you have any questions please do not hesitate to touch base. My website is www.firsthomeinfo.ca and have a good day!