Helpful Tips

1. Accelerated bi-weekly payments. Pay your mortgage every 2 weeks for a total of 26 payments each year. Depending on your mortgage size you will shave years off your amortization and save thousands in interest.

2. Round up your mortgage payments. If your accelerated bi-weekly payment is $457, have your lender round it up to $500 each payment. The extra $43 will do wonders for your mortgage pay down.

3. Use a portion of any work bonus money or gifted cash on extra payment. Know your mortgage contract and see how much extra you can put on one payment.

4. Make a lump sum anniversary payment. Most lenders will allow you to make an extra mortgage payment each year which is directly applied to your principal. Again check your mortgage contract.

5. Refinance your mortgage to a lower interest rate and lower your amortization. You will pay less in interest and more to your principal. If you refinance early, you may have mortgage penalties to pay. Do the math or have a professional work the numbers to see if it's worth refinancing.

At LendMoola we are here to help you get out of debt faster with debt consulting. If you need to consolidate debt or need money for a home renovation we can help through a 1st or 2nd mortgage. Also if you just bought a house and have a firm offer on the sale of your house and don't have money for the required deposit on your new home we can help through a deposit loan. Contact us for more info.

Some credit cards/department store cards interest rates are 20-30%. Average Canadian carries $4,100 in credit card debt.

1. Pay more than the minimum monthly payment. May seem easy to pay the min payment but it will cost you more in interest over time and will take a lot longer to pay off in full. A credit card balance of $6,000 can take more than 40 years to pay off if only the min payments are made.

2. Organize your debts. Add up all your total debt. First, arrange your debts from highest to lowest interest rate. Second, add up your monthly min monthly payments. Next, work out how much extra you can afford to put towards your debts. Take that extra amount and put it towards your highest interest rate debt. Keep doing this every month until each card is paid off. Consider getting a side job to help in paying off your debt.

3. Debt Consolidation - think about getting a Line of Credit or Loan at a lower interest rate. Use that money only to pay off your high-interest rate debt. After it's paid off only focus on paying off your Line of Credit. Consider cutting up your credit cards/department store cards. Maybe carry one credit card for emergency situations.

4. Private Money Lending - if your unable to get a loan or LOC from a bank or credit union consider getting a loan or 2nd mortgage from a private money lender. If you need more information feel free to contact us.

5. Rely on your CASHFLOW instead of credit is the best way to avoid debt.

35% Payment History - pay your bills on time.

30% Utilization Ratio - how much of your total available credit your using. Try to keep your balance below 35% of your credit limit and don't go over 70% of your limit.  

15% Length of Credit - the longer you have an open account the better. Think of it as good track record. 

10% Types of Credit - its good to have a mix of different types of credit to show you can handle your payments. 

10% Inquiries - these happen when you agree to have a "hard credit check". Usually happens when opening a checking account with a bank or starting a new cell phone plan.