There was an interesting article in the Financial Post about Tom, a divorced father of two with a mountain of debt from the divorce, requiring him to consider additional financial options. His eldest daughter has recently graduated from university and is now out in the workforce, while his youngest daughter is just starting her university education. Tom has a house, wants to be able to finance his daughter’s university education, but has limited financial assets. Therefore, Tom must carefully consider his options so that he can sustain his lifestyle. If you have ever been in a situation similar to Tom’s then here is a possible solution.
After speaking with a mortgage broker, Tom was given various options to consider for financial aid. I think that Tom’s best option would be to take a second mortgage. There are many situations why one would take a second mortgage that include: home improvements, debt consolidation, help your business, investments, and emergency expenses.
Tom has mortgage payments that need to be made, his daughter’s university tuition to pay, and other lifestyle expenses. Therefore, Tom would be taking a second mortgage to aid in his debt consolidation. This is beneficial to Tom because a debt consolidation packaged offers less interest and lower monthly payments. As a result, Tom will be able to pay off his expenses and watch his daughter excel on her pathway through university.
Even though times can be tough, there is always another option. In Tom’s case, a second mortgage to aid in his debt consolidation would be the best option.
