One of the options some people pursue is to refinance their mortgage and take the extra amount of money they get on a refinance and pay off their debt.
There are many reasons why that is a good idea, and many more as to why it is a bad idea.
If you have only had your mortgage for a few years and you do not have a great deal of equity in your home, then getting a refinanced mortgage at a significantly lower interest rate and then adding money to pay of credit card debt could work.
But remember that it takes 30 years to pay off a mortgage, 15 years if you were able to get a shorter term, but you could have your credit card debt paid off in less than that if you were to work with an experienced and qualified debt consolidation company.
A seasoned counselor can get you on a plan that would have that money owing paid off in less than 15 years, and a program of this sort would not eat into the equity on your home.
If you refinance and roll your indebtedness into the refinance then you are essentially taking debt that should take less than 15 years to pay off and stretching it out to 15 years, and then you are paying extra interest on it for those extra years as well.
If you have many years on your mortgage paid off and a nice bit of equity in your home then you are not only close to owning your home outright, but you also have equity to borrow against for things like your kids' education or your retirement.
Refinancing your mortgage essentially eliminates all of that and puts you back square one again.
In the end it may not be worth it to refinance.
Then, the best way to handle a situation like this is to contact a service for consolidating your financial obligations and make an appointment to speak to one of their qualified representatives.
By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered.
Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.