Consolidating Debt and Increasing Cashflow

If you have a mortgage and other debts and are struggling with cashflow, there are options available to help you regain financial stability. One of the most effective strategies is debt consolidation through mortgage refinancing.

By leveraging the equity in your home, you can roll high-interest debt—such as credit cards and personal lines of credit—into your mortgage. This approach can significantly lower your overall interest costs and free up monthly cashflow that can be used elsewhere.

A Real-Life Example

I recently worked with a client whose mortgage renewal was approaching. They had been benefiting from a low-rate environment but were now facing much higher interest rates. On top of that, they were carrying over $17,000 in credit card debt and an $89,000 line of credit, with total monthly payments exceeding $970.

To help them regain control of their finances, I refinanced their mortgage, consolidated all their debts, and extended their amortization to 30 years. This adjustment resulted in an extra $320 per month in freed-up cashflow.

With this extra $320/month, they now had two powerful options:

• Invest in their retirement.

• Increase their mortgage payments, reducing their amortization by six years.

Pro Tip: Make Your Savings Work for You

If you consolidate debt into your mortgage, continue making the same total monthly payments as before, but redirect the difference into a retirement investment or back into your mortgage. This way, you reduce interest costs while simultaneously building wealth for the future.

The Power of a Mortgage as a Financial Tool

A mortgage isn’t just about homeownership—it can also be a strategic financial tool to improve cashflow and accelerate wealth-building. If you're facing high-interest debt and cashflow struggles, let’s explore how a mortgage refinance could work for you.

Reach out today, and I’ll review your situation to see how we can optimize your debt structure and improve your cashflow.