Now that you have an accepted consumer proposal you feel great. You feel relief in knowing that you no longer have to worry about juggling your bills or getting calls from creditors.
But now what? Have you ever thought about when and how you should pay it off yet?
Many people mistakenly think that you have to wait until the five-year plan is up to pay off your consumer proposal. This is incorrect. You can and you should pay off your consumer proposal as soon as possible, we review the key reasons below.
The housing market has experienced significant gains in the homes’ equity over the past few years. Why not tap into that extra equity to pay off your consumer proposal years earlier than you expected!
Here is an example that will help.
They can now save the $1,200, reinvest it or put it on their mortgage. Bob and Sherry ’s new mortgage is calculated at a 4.5% rate using a B lender for a 2-year term.
A much better solution
2 years later after re-established credit, we return Bob and Sherry’s mortgage to an A lender with lower rates.
Peace of Mind – By paying off your consumer proposal early you know that there is no chance that you will default on you proposal payment which takes lots of added stress off your shoulders.
Improved Credit Score – If you have debt and pay it off, your credit score will improve. When you get a loan to pay off a consumer proposal you will have added debt, if you pay that debt off in time, your credit score may improve which makes getting loans much manageable, getting low-interest rates on credit cards, and many more beneficial reasons.
No Stress When Your Mortgage Needs Renewal – When your mortgage needs a renewal you will not have to be worried about the added debt you have obtained over the years because luckily you thought ahead and paid it off. This makes the process easier, quicker, and less stressful.
This is a lot of information to take in, you may not understand it all, or have some questions to ask, or just don’t know what to do with all this information.
This is where we come in, we can help you with all your questions and help you live a debt free stress-free life. Get in contact with one of your mortgage professionals today.