Refinance Your Mortgage for Debt Consolidation

If you have a huge # of bills to pay off every month, you can cut them down by refinancing your current mortgage for debt consolidation. To do this however, you must have built equity in your home.

Americans carry about $5800 of credit card debt from one month to another
according to

Paying monthly interest charges on this kind of debt means you will end up paying almost double the debt you owe, over a longer term. In order to avoid this, you can use the equity built up in your home to pay off your debts via debt consolidation.

Why Should I Refinance my Mortgage for Debt Consolidation?

  • Lower Consolidated Interest Rate: The interest rate you will be charged on your mortgage refinance on your debt consolidation will be much cheaper than the APR charged on credit cards.
  • Consolidated Mortgage Payments: Instead of keeping track of many different bills every month, you will make one consolidated payment to your mortgage company every month, with a lower interest rate.

How to Deal with Credit Card Debt

If you follow these debt consolidation tips, you will be able to pay off your credit card debts very fast and feel good when you have zero credit card balances.

  • Pay Off Higher APR Credit Cards First: You want to be earning interest from the bank, and not paying the bank interest! Therefore, pay off credit cards that have the highest APRs. If you achieve this, you will be paying less interest charges every month and have more disposable income.
  • Make Paying Off Your Debt Your #1 Priority: If you consolidate all of your debts, don't think you will have more disposable income every month. You should dedicate as much of your income as you can to pay off your debts first.
  • Resist Impulse Buying: Many people rack up tons of bills and put them on their credit cards. However, they have no idea how they will be paying for these bills. If you are one of these people, you are doing yourself more harm than good.