This is a client that came to us 5 years ago with a typical situation we see here at MT...
The client owned a $400,000 house with around $220,000 balance of a mortgage with a 16 year amortization left. No problem right?.. but then had around $88,000 in Consumer debt, yes Credit cards and Lines of Credit etc etc.
The client explained that..."I can afford the monthly payments, I just hate how slow the debt decreases each month, it seems I am on a debt treadmill"
What many Canadians don't realize when it comes to Credit Card and Loan debt, its NOT just the lower rate that affects the interest... but how is the interest compounded within those loan/credit card payments? some are monthly, and even daily!! and that is what is working against our payments.
Needless to say, we created I new revised plan to.... well, see for yourself :)
So again, yes we all realize a low rate is crucial to make this happen, but don't let the rate blind the fact that the overall guidance and advice is really what makes the difference.
Let us know if you have a simular situation, and be sure to SHOP SMART !
President, Mortgage Teacher Inc.