Debt Consolidation Mortgage
Too much debt to get a mortgage?
I currently have a good amount of debt and was considering a Debt Consolidation loan to pay off credit cards etc. I have a good amount saved up in RSP's and a tax-free savings account. I would like in the next year or so to look at buying a condo so I can at least sink money into something other than rent. I make decent enough money now, but there are a lot of debt. I will put it out to see if anyone has any suggestions. Income: $ 45.000 $ 33.750 base 11250 commission Debt: $ 15k credit card (hence consolidation loan idea) $ 10k overdraft $ 300/month card loan I have about $ 10k saved up for a deposit, pretty decent credit rating, except for the actual quantity of large debts, never miss a payment something, always make more than minimum payments, etc. Any suggestions, comments? Thanks in advance
I tend to agree with the first persons reaction. The interest earned on funds sit in a cash account, in relation to the debt you are paying for personal loans and credit cards means you'll pay more in interest on loan you will ever earn invest it. My advice would be to pay the higher rate loan first 10k. So with the money you save each month by not having to pay for old debts, you can begin to put back into a savings account to build it up again. The bonus is, you're not paying interest. You will actually end up better off financially in the end. From my understanding, your debts quite high for bad loans – that it is not against something that is due to earn money or increase in value in the future. It is a debt against things that will devalue in time. Wipe off your debts a fresh start so banks will look more favorably on you, when considering a loan for you.