With the holiday season over and the New Year here many people will be getting those dreaded credit card bills that have the holiday seasons purchases on them as well as other purchases that were made prior to.

Sure we can all say the easiest solution to getting rid of our debt is to not accumulate any in the first place, but lets face it life happens!  Unexpected things can come out of nowhere, good or bad it just happens and no one can predict how much it might cost you.

Having said that, there are a couple of ways you can get control of your debts and pay them off.

Lets use an example.  You owe a total of $25,000 to five different Creditors. Your first step is to figure out what each debts interest rate is and your minimum monthly payment.

According to the chart above you are paying $500 in minimum payments each month.

Next you need to figure out how much extra cash you have that you can contribute to paying off your debt each month above the minimum monthly payments. Lets say you can afford to contribute an extra $300 each month to paying off your debt.

There are two methods we are going to look at debt snowball and debt avalanche.

Debt Snowball: list all of your debts from smallest to largest balances. You will start by paying off the smallest balance first which in this case you would pay off the Master Card  and once that is paid off you would move onto the Line of Credit and so on. Just remember that once you pay one off you should take that extra $300 as well as the minimum payment from the Master Card and apply it to the next largest debt each month.

You will be eliminating the number of creditors faster which will give you the motivation you need to pay off all your debts.

Debt Avalanche: This approach is slightly different in that instead of paying off your lowest balances first you will pay off the one with the highest interest rates.

When you do the math this method is most effective way to repay debt because you will end up paying less interest over the course of your repayment schedule.

While both methods will work it is really up to you and how you would like to go about getting your debts under control in 2012.

If you have a home and you have equity you can also consider a re-finance to eliminate all the monthly payments and simply increase your current mortgage payment. Call us today if you would like more information.

We would like our readers to post a question to our blog as a comment or to our social media such as Facebook, Linkedin or Twitter and we will answer it so all our readers can get the benefit.

We usually offer information about mortgages and finance in our posts but here’s your chance to participate by starting the dialogue.

Ask any mortgage, credit related or financial goal question and we will get you the answers you need.

Low rates, focused experience and knowledge, plus a helping attitude is what “Your Durham Mortgage Solutions Team” is all about.  Why settle for less?  Post a question today!

See the CTV news clip and Elfie’s comments today. Canadians have credit concerns.

•  The repayment period for a proposal is a maximum of 5 years;
•  If the majority of your creditor (50% +1) accepts the proposal then it is deemed to be accepted by ALL of your creditors; 
•  On the date you file for the proposal all your interest rates are frozen;
•  You are able to negotiate and pay all or only a portion of the debt you owe;
•  Your creditors are restricted from taking any legal action against you while you are in proposal;
•  Any wage garnishments (except for support and alimony) are immediately stopped
• Once you have filed for proposal, at no time can any unsecured creditors garnish your wages or take you to court until the proposal has been dealt with.

Consumer Proposals were created as an alternative to bankruptcy. If you find yourself in financial trouble but you have the ability to repay a portion of your debt, then a consumer proposal may be the right solution for you instead of bankruptcy.

If you’re discharged from a Bankruptcy or Consumer Proposal, you’ve paid your dues, it’s time to let “Your Durham Region Mortgage Doctor” help you get approved for a mortgage and get the home you deserve! We’re here to help!  Contact us now.

Last year Elfie was a Director and sat on the Membership and Promotion committees. She was instrumental in helping to revamp the DRHBA website to include features that benefit the members.

The New DRHBA blog was also created with her help. Now members have even more benefits when they belong to the professional group that is responsible for building the homes and communities that the residents of Durham call “Home”.

This year promises to bring new opportunities to build the association even further. In 2011 Renomark was given a higher profile within the organization and this year with the help of a separate committee Renomark should be at the forefront of all those who have made professional renovation their career.

Mortgage Intelligence one of Oshawa’s largest Mortgage Brokers will be joining Renomark to offer their new consumer loans, designed to help finance renovations along with their low rate mortgage solutions that have become the mainstay of the business.

Visit the site of the Durham Region Home Builders Association.

It’s official, Our New Facebook Fan Page is up! Please have a look and don’t forget to enter our contest for a chance to win $25,000!!! No purchase necessary. Random draw in December. What would you do if you won $25000?

Click here to view and like our New Facebook Fan Page Today!