You’re just using the most expensive debt in the system.
For Canadian homeowners, there’s a far more effective solution that banks don’t always explain clearly:
Using home equity to consolidate credit card debt into one structured mortgage solution.
Done properly, this can change cash flow immediately.
Why Credit Card Debt Is So Hard to Escape
Credit cards are designed to feel manageable — until they aren’t.
The problem isn’t the balance.
It’s the structure.
Credit card debt comes with:
extremely high interest rates
short repayment cycles
compounding interest
multiple minimum payments
Even when you pay on time, progress is slow.
Why Banks Often Say No (Even With Equity)
Many homeowners assume their bank will help consolidate debt automatically.
In reality, banks often block it because of:
stress test rules
income re-qualification at refinance
frozen or reduced HELOC limits
conservative appraisals
tighter lending policies
This is why homeowners with significant equity are still told to “just keep paying it down.”
That advice is costly.
How Home Equity Debt Consolidation Works
A properly structured debt consolidation mortgage:
pays off all credit cards in full
replaces multiple payments with one
lowers the blended interest cost
improves monthly cash flow immediately
Instead of juggling chaos, everything becomes predictable.
Why the Interest Rate Isn’t the Most Important Number
Many borrowers fixate on rate alone.
The better question is:
What happens to your monthly cash flow?
How much interest are you paying across all debts?
How quickly does financial stress drop?
A mortgage with a higher rate than a HELOC can still save thousands if it eliminates high-interest revolving debt.
Structure beats rate.
When Private Debt Consolidation Makes Sense
Private mortgage solutions are often used when:
the bank says no
income is self-employed or commissioned
credit utilization is high
timing is urgent
HELOCs are frozen
Private lenders focus on:
property value
equity position
location and marketability
realistic exit strategies
This allows consolidation to happen quickly, even when banks stall.
Who This Works Best For
We regularly see this solution help:
self-employed homeowners
families hit with rising living costs
borrowers juggling multiple cards
homeowners facing renewal pressure
anyone stuck in minimum-payment mode
If you have equity, you likely have options.
The Cost of Doing Nothing
Leaving credit card debt untouched often leads to:
worsening credit utilization
higher stress
reduced future borrowing power
fewer options at renewal
Using equity proactively is about control, not desperation.
The Bottom Line
Credit card debt doesn’t mean you’re failing.
It means your debt is structured poorly.
Your home equity is often the cheapest and most effective tool to fix it — if done correctly.
Struggling with credit card debt?
You don’t need another minimum payment.
📞 Call Lendworth today to explore debt consolidation options using your home equity and regain control of your finances — fast.