If you need to borrow money to consolidate your debt, please be aware, first of all you need to know just how much debt you have from all areas.  Is it just from credit card or from both lines of credit, furniture store credit and/or car payments?  Plus any other debt you may have incurred like education debts for yourself or your family.  These all need to be listed by credit card company, Bank, other companies and Colleges or Universities!

When listing the above requirements you must be sure of the dollar amount and the credit card percentages on each credit card.  What are you being charged by a company for a car loan, or University loan.  Once this is completely known, it is time to search out Financing!  Now most Financing Companies are going to charge you a fee to do this for you and you need to know what it is and is it feasible!  Ask a lot of questions.  Mark them down with you credit card statement percentages before calling anyone.

Don’t let a Finance Company pressure you into doing business with you until you get the facts from other lenders!

If you needed money because you started a business of your own and owe money on the cards, there are other solutions to help you in this area. Now, scan you local newspapers or community newspapers and give them a call.  When this happened to a friend of mine who owed  $130,000.00 because he wanted to set up a business and could not get a loan, he maxed out all of his credit cards.  Lucky for him though he did not have a mortgage at the time!

He found all kinds of Financial Institutes that were ready to give him the money but at a great cost just to do the leg work, that he could do himself!  Over a thousand dollars is what they wanted to charge him, he finally bartered and got it down to $800.00.  What they advised him was that they would go to the various Credit Card people and issue a letter to reduce the percentage on his cards.  From 14 to 21% down to half of each card…well it didn’t work so he thought of another way.

He called a government funded company in Canada and they advised him they could do it free of charge but that the monthly fee would be an incredible amount because it had to be paid off in 4 years.  Well with a dollar figure of $2,700.00 a month payable in 4 years, that was too hard for him to handle.  The Company told him to go to a Bank and get a loan on the value of his home.

It was his cheapest way out!  They gave him a Company to deal with in Toronto, he went to them and was told it would cost him $700.00, and that they could get him a mortgage at 4%.

He decided because he was mortgage free to deal with his own Bank, he was able to procure a mortgage for 3.8% payable for a term of 5 years at that rate.  With his business to run he felt that was feasible and now he pays $1,100 a month including his taxes and is some happy camper!

If you have a very low mortgage this may be a way for you to get additional money at a good rate.  Don’t abuse it however because you never know if and when you may need further funding!