Consolidate Your Debts

Getting out from under debt is a hard thing to do. Interest rates on credit cards can top 20%! It sometimes seems that all the money you pay out each month on these cards doesn't even make a dent on the balance.

Home loans are designed to make that easier. If you've built equity in your house, you can borrow against that by either refinancing or getting a home equity loan. You replace your high monthly credit bills with one, low monthly bill. And while all the interest you pay on your credit cards is not tax deductible, the interest on your home loan is tax deductible, so you get some of it back in tax breaks.

Of course, this won't do you much good if you don't keep running up bills on your credit cards. They're the things that made all the trouble in the first place.

Ways To Consolidate Your Debt
Refinance with cash out You could refinance your home loan at a lower rate, take cash out, pay off all your debts, and have just one, low monthly payment.	Get a home equity loan You could get a loan on just the equity in your house and pay off all your debts and replace them with two monthly payments: your first and second mortgages.

Ways To Consolidate Your Debt

Refinance with cash out

You could refinance your home loan at a lower rate, take cash out, pay off all your debts, and have just one, low monthly payment.

Get a home equity loan

You could get a loan on just the equity in your house and pay off all your debts and replace them with two monthly payments: your first and second mortgages.