Debt consolidation for exemption from finanical crunch


I am new to this forum. I am from Ontario, Canada. I have a lot of credit card debts and home loan. All my income is spent towards these payments. I am working on a solution for this. I am unable to manage it That brings me to this forum.

I was able to know there is debt consolidation mortgage, which can be used to pay off every bills and loan and combine it into a single loan. I am hearing this for the first time, so, I need help to better understand.

I have made a lot of payment faults for the existing loan. Will I be eligible for this mortgage? Will I get the loan for a longer duration?


Debt consolidation is possible, but unless the behavior that led to the debt is changed, it probably won’t do any good. Do you own any assets with net equity that can be sold to pay off some of the debts? If you sold everything you own, including your home, what would your financial situation look like? Would you still be underwater?

A debt consolidation mortgage will incur another debt, and will increase your total debt, even though it might reduce your total monthly payment. If I were you, I’d start selling whatever I could, and read books like “Total Money Makeover” to understand how to deal most effectively with the problems you’re facing.


The fact that all your income is going to these debts is a good thing. That means you are paying them off faster. I know it sucks to not having any disposable income but the faster you pay the debts the faster you will get disposable income.
If I were you (and I was) I would make it a priority to not take on more debt. Then if you can transfer debts to lower interest rates without incurring more expenses you should do that. That will be difficult if your credit is bad.
Then work more if you can to add income. Pay the highest interest debt off first and or the lowest balance first. Highest interest makes the most sense mathematically. Lowest balance makes sense psychologically. Either one is good if you change your debt collecting ways.
Keep coming back here and keep us updated.


You’re not alone, @charlie11. Many in here have climbed out from under the rock of suffocating debt. You’re smart to reach out. listen, and learn. I’m afraid I can’t be of much help, as I’ve never been under that rock. However, I feel for, and empathize, with those in your condition.

The great news is, you’re on this forum, and your committed to improving your life. I hope others find this thread, and offer you help through their experiences! Best of luck, my friend!


Hi Charlie, I hope this helps

Warm regards


Thank you guys for your support and help.