Home Equity Line of Credit Toronto – Dangerous Debts

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Home Equity Lines of Credit in Toronto – Dangerous Debts

Over the last several years, we have seen increasing numbers of people in the Greater Toronto Area who have substantial home equity lines of credit – seeking insolvency help.

Unfortunately, what some people do not realize, is that a home equity line of credit loan is just like a mortgage, if you fail to pay it, the financial institution that issued the loan, may have the right to take possession of your home.

Dangers of Home Equity Lines of Credit

There are a number of dangers that some home equity line of credit borrowers experience:

  • Easy ATM access to loan funds and flexible repayment options – makes it easier to overspend.
  • Gambling with the equity of their home on investments. ‘Putting home equity to work’ is a concept that can have a devastating impact on families whose home equity is lost to bad investments.
  • Starting with home upgrading projects that quickly become an easy way to finance an unrealistic life style.
  • After paying off high credit card debts with a home equity line of credit – running the cards back up and taking out a second or third home equity line of credit.

Whatever the reason for taking out a home equity line of credit loan, the reality is, if housing prices drop (a very real possibility), or interest rates go up (a certainty), or you lose your job – the chances of losing your home may have increased.

An important fact to always keep in mind when you are dealing with your bank or financial institution – they are not your friends. They are selling products and services. They do not offer you a home equity line of credit as a gesture of good will. They offer it because they will make money on it – and they have the security of knowing that if you do not pay them back, they can seize and sell your home to get their money.

Step Away from the Edge

If you have a home equity line of credit, pay it off as quickly as you can.

It is always wise to practice sound money management and avoid unnecessary debt.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
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12:21 16 Nov 22
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Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
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02:43 26 Oct 22
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