Debt Consolidation through a Mortgage Refinance
A mortgage refinance is frequently used to consolidate credit card and personal loan debt. This process tends to be popular as a mortgage loan is usually available at a substantially lower interest rate than the interest rate you pay on your credit cards or personal loans.
Only a single payment would need to be done if all your debts under the mortgage are consolidated.
Additionally, depending on how well you research and what terms on mortgage refinance you will get, you may end up paying less each month. This helps many people manage their finances more effectively.
When you apply for mortgage ensure that:
1. You are fully informed about market situation and your personal financial situation;
2. Your payments have been reduced - not increased;
3. There are no hidden fees or costs, therefore carefully read contract before signing;
4. You have achieved control over all your debts;
5. There is a real long term benefit to you.