What About Debt Consolidation?
 
What do you do if you have always had stellar credit history, you make your payments on time, and you have a good job – but you want to save yourself some money each month on the credit cards that you have been paying out? You have a couple choices depending on your situation, but usually you are looking at a refinancing of your current mortgage or a debt consolidation.
 
Debt consolidation is great because it allows you to take all of your existing debt and put it into one loan. A refinance is similar, except all of that debt is not put together with your mortgage. Picking one over the other depends on your financial situation and how much you owe on both your credit cards and your home.
 
If you have a lot of equity in your home you can always take some of it out and pay off your bills. You can do this by refinancing your current mortgage or you can get a home equity loan. Both are great because you will get a lower interest rate because it is a secured loan on your home. However, if you fail to make your payments, what was a credit card debt is now a secured debt and you could lose your home.
 
But if you get a separate unsecured debt consolidation your debt will not be attached to anything. It will, however, have a higher interest rate than if it was attached to your home, but it is most likely still better than what you were paying on your credit cards. What you choose is up to you, but choose wisely because it really could affect both your credit score and your monthly payments.
 

 

 

 

 

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