Troubles with money don’t just affect people’s finances. They can make a person feel like they’re constantly chasing something out of reach, which impacts every fact of life. Depending on how dire the situation is, you may feel shame, guilt, or fear from the time you wake up to the time you go to sleep.
The good news is that even people who were refused a bank loan can work with Burke Financial to find debt consolidation solutions that meet their needs. We’re proud to navigate people out of their troubles, so they can stabilize their finances and get back to feeling optimistic about the future.
Let’s check out a few common misconceptions people have concerning how to improve your credit and how Burke Financial can help you set yours right.
1. Closing Credit Cards Helps
People tend to think that shuttering a credit card will boost your credit score since you’re lowering the available credit to you and also the credit history for that account. However, closing a credit card doesn’t erase the history on that card.
Actually, negative credit card accounts stay on the report for six years from the time the account first went delinquent. If you want to get a competitive rate when borrowing money, it’s better to leverage the equity you’ve built up over the years by looking at home equity loans.
You can enjoy a lump sum payment with fixed interest rate payments at a low rate, so it’s easy to get significant amounts of cash quickly. Our financial experts will walk you through the process after determining which borrowing option best suits your situation and goals.
2. Higher Salaries Means Higher Scores
A person’s credit score reflects how they pay their bills, not how much money they have available to pay them. If you have more money at your disposal, you may have an easier time paying off your monthly credit card balance.
You may also have a more expensive lifestyle which offsets the higher salary. People of all incomes can get into financial difficulties.
3. Only People in Crisis Apply for Second Mortgages
Using your home as collateral to secure great lending rates may spook people who mistakenly think that only those facing crises would leverage their home’s equity in this way. Life is expensive, and applying for a second mortgage is something people commonly do to pay for big-ticket purchases.
Things like cars, post-secondary education, vacations, and home renovations are often paid for by HELOCs, second mortgages, or home equity loans. We’ll guide you through the best options, given your goals and conditions, so you have the means to access substantial cash when you’re in an emergency or tight spot.
Most experts recommend not using these funds lightly since the failure to repay can result in losing your home if you’re not careful. Using funds secured by leveraging your equity is ideal for home renovations since that will increase your home’s value and help pay for itself.
4. All Credit Reports Are the Same
The national credit bureaus might show different information in different formats. You might get a different report, depending on where you look.
Likewise, you may get declined for a loan at one bank and approved by another. Burke Financial regularly deals with sub-prime mortgages, helping people stabilize their finances and get back on their feet when they’ve run into a financial corner.
5. Debt is Impossible to Overcome
Thankfully, this is not remotely true! It might feel this way sometimes, but there’s always a way forward, which begins with a single step. Burke Financial can help if you’ve accumulated debts from multiple sources, as staying on top of payments can be challenging.
Sometimes it’s not just the total money owed that’s daunting, but the number of places it’s owed to. Debt consolidation mortgage loans could be the ideal way to streamline and bundle together various payments so there are fewer moving pieces to sort out and track.
If you want help from industry-leading debt consolidation experts in Hamilton to Kitchener and everywhere in Toronto and across the GTA, connect with Burke Financial. As a top-rated firm accredited by the Better Business Bureau, we can provide you with the same debt relief strategies, such as debt consolidation loans that we’ve already provided for thousands of Canadians.
6. Getting Out of Debt Takes Years
There’s no universal approach for getting out of debt, and, of course, how long it takes to get out of it depends on how much debt you have already. Whatever the scenario is, the best thing you can do is speak to a professional mortgage broker about getting on the right path.
We’ve dealt with hundreds of clients behind on their bills and know how stressful it is to hear the phone ring and fear it’s a collector. Our entire team knows time can’t be wasted, and we’ll go the extra mile to get you out of debt so you can return to your normal life.
Burke Financial can offer you flexible solutions to meet different financial goals and timeframes. If you fear you’re drowning in debt, we’ll be your lifeboat and captain to help you get back to shore. However long the road to getting out of debt may be, it’s always shorter if you begin the journey today.
Nobody’s money issues are alike, and we’re happy answering financial questions that you may have about debt consolidation loans, home equity loans, second mortgages, or anything else. There are multiple options, and each one gives you options to be flexible. Don’t let the ideas about debt from Hollywood movies sway you into thinking there’s no hope — connect with Burke Financial as soon as possible to get headed in the right direction.