{"id":6866,"date":"2018-09-13T10:01:46","date_gmt":"2018-09-13T14:01:46","guid":{"rendered":"http:\/\/www.debtcare.ca\/?p=6866"},"modified":"2018-09-13T10:07:44","modified_gmt":"2018-09-13T14:07:44","slug":"home-equity-loan-pay-off-debt","status":"publish","type":"post","link":"https:\/\/www.debtcare.ca\/home-equity-loan-pay-off-debt\/","title":{"rendered":"Should You Get a Home Equity Loan to Pay Off Debt Before Interest Rates Increase Again?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6867 alignright\" src=\"http:\/\/www.debtcare.ca\/wp-content\/uploads\/2018\/09\/home-equity-loan-to-pay-off-debt-DC1.jpg\" alt=\"\" width=\"189\" height=\"180\" \/>How confident are you that you could survive another Canadian interest rate increase? If your answer is \u201cnot very\u201d perhaps it is time to consider getting a home equity loan to pay off debt.<\/p>\n<p>Since July of 2017, the Bank of Canada (BOC) interest rate has increased from 0.5% to the current 1.5%. Although the BOC held off on increasing the rate again in <a href=\"http:\/\/www.debtcare.ca\/bank-of-canada-prime-interest-rate-announcement-september-2018\/\" target=\"_blank\" rel=\"noopener\">September of 2018<\/a>, economists speculate that rates could go up as soon as October 24, 2018 \u2014 the next scheduled BOC announcement.<\/p>\n<p>Throughout the remainder of 2018 and 2019, experts predict that interest rates could reach as high as 2.25%. If that happened, would you be able to cope?<\/p>\n<p>Increasing interest rates affect all forms of unsecured debt \u2014 credit cards, lines of credit, unpaid bills, variable-rate mortgages, and more. Even some secured debts, like a fixed-rate mortgage, could be affected when it is time for renewal as Canadian mortgage rates have also increased along with the interest rate.<\/p>\n<p>This means that if you owe $10,000 on a credit card and are paying 1.5% interest, you would owe $10,150 with the interest calculated. However, if the interest rate were to increase \u2014 say to 1.75% \u2014 you would owe $10,175.<\/p>\n<p>That may not seem like much of a difference, but credit card interest rates are rarely that low, so you may be paying even more in interest. In that case, even an extra $25 could be a big burden. And many people have more than $10,000 worth of debt. Some have hundreds of thousands worth of debt; 1.75% interest on a debt of $100,000 would be an extra $1,750.<\/p>\n<p>Plus, the longer it takes to pay off a loan, especially one like a credit card debt without a repayment schedule, the more interest you will be charged. Imagine that extra $25 multiplied by 12 months \u2014 suddenly you would be paying $300 more during the year than you otherwise would have. Even if you can afford it, couldn\u2019t that money be put to better use elsewhere?<\/p>\n<p>The solution is to deal with your debt before interest rates increase again. And you may just be standing on a way to pay it off \u2014 literally.<\/p>\n<p>If you own a house, you could potentially access financing to pay off your outstanding debts by taking out a home equity loan or refinancing your mortgage. You would likely be left with one monthly loan that you would have to repay, but you would have a fixed-interest rate. This way you would know exactly what you have to pay every month, so you could plan for the expense.<\/p>\n<p>Some debt consolidation options available through your home equity include:<\/p>\n<ul>\n<li><a href=\"http:\/\/www.debtcare.ca\/mortgage-refinancing-tips-for-debt-management\/\" target=\"_blank\" rel=\"noopener\">Refinancing your first mortgage<\/a>.<\/li>\n<li><a href=\"http:\/\/www.debtcare.ca\/breaking-down-second-mortgage-options-and-costs\/\" target=\"_blank\" rel=\"noopener\">A second mortgage<\/a>.<\/li>\n<li><a href=\"http:\/\/www.debtcare.ca\/your-2018-debt-consolidation-options\/\" target=\"_blank\" rel=\"noopener\">Home equity loan<\/a>.<\/li>\n<\/ul>\n<p>By consolidating debt through a home loan or mortgage refinancing, you could protect yourself against future interest rate increases and make sure you stay financially well no matter what the BOC decides.<\/p>\n<p>At DebtCare, we offer one of the most competitive financial programs to help people no matter their credit or income. Bad credit? No problem. Self-employed? No problem.<\/p>\n<p>Contact us today for a free consultation to find out more about using a home equity loan to pay off debt.<\/p>\n<p><strong>Call 1-888-890-0888 or visit <a href=\"http:\/\/www.debtcare.ca\/financial-products\/\" target=\"_blank\" rel=\"noopener\">http:\/\/www.debtcare.ca\/financial-products\/<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How confident are you that you could survive another Canadian interest rate increase? If your answer is \u201cnot very\u201d perhaps it is time to consider getting a home equity loan to pay off debt. Since July of 2017, the Bank of Canada (BOC) interest rate has increased from 0.5% to the current 1.5%. Although the[…]","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1961,8,1711,1271,1933,1970,1975],"tags":[2035,11,2036],"class_list":["post-6866","post","type-post","status-publish","format-standard","hentry","category-bank-of-canada-interest-rate","category-blog","category-canadian-consumer-debt","category-debt-consolidation-2","category-mortgage-financing","category-mortgage-interest-rates","category-mortgage-refinance","tag-debt-consolidation-mortgage","tag-debtcare-canada","tag-home-equity-loan-to-pay-off-debt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.4 (Yoast SEO v17.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.debtcare.ca\/home-equity-loan-pay-off-debt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Should You Get a Home Equity Loan to Pay Off Debt Before Interest Rates Increase Again?\" \/>\n<meta property=\"og:description\" content=\"How confident are you that you could survive another Canadian interest rate increase? If your answer is \u201cnot very\u201d perhaps it is time to consider getting a home equity loan to pay off debt. Since July of 2017, the Bank of Canada (BOC) interest rate has increased from 0.5% to the current 1.5%. 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