The Challenge: To Consolidate and Restructure Your Your Debt

Obtain the cash needed to reorganize, restructure, or retire your debts.

John Shareholder has a home with a $300,000 mortgage @ 9% and $50,000 in credit cards @ 12% and he wants to refinance. He owns 100,000 shares of XYZ and several mutual funds, and believes these are sound investments that will appreciate in in the months ahead. John also has very high balances on his credit cards, which are impacting his financial and credit health in multiple ways.

With our securities loan program he can avail of a limited recourse loan at with rates from 3% (for purposes of this example, let us say the rate is 4.35% fixed). Interest-only terms (or interest + principle if desired). He can receive enough cash with good rates and terms sufficient to refinance the house and his credit cards all at once – and still participate in the upside of his securities should they rise in value over time as he expects. That participation is something he would completely lose if he sold his shares outright through his stock broker.

If he avails of our institutional stay-in-title/account loan program, funding, management, and processing will be handled exclusively through SIPC-member institutions.

Behind the Numbers:

Analysis:

• John obtains a 75% securities loan @ 4.35%,which will yield $375,000 in proceeds.

• $300,000 pays off the house; he now owns it, free and clear. He uses $50,000 to pay off all his credit cards. His credit is preserved.

• John has saved himself $6,000 per year in interest expense on his house. He has also saved at least $2,500 per year in interest expense on his credit cards.

And, since he now has $25,000 in remaining cash from his stock loan program, John can take his family on a nice vacation or buy a new car – or maybe both...!

If you'd like to locate an appropriate lender for your securities-based financing, use a major search engine to begin your search.