Using the equity in your house to pay off all of your debts is a smart move. Refinancing, or combining all of your debts and adding them to your mortgage, provides various advantages. For starters, the overall interest rate and amount you pay is lower. Credit card interest rates can range from ten percent to twenty-nine percent! This rate is compounded monthly rather than semi-annually as with a mortgage.

The monthly payment is perhaps the most significant benefit. You can take advantage of a low monthly payment by consolidating your debts into your mortgage. This can offer you the breathing room you need to make a plan and get serious about paying off your debt. You can save thousands of dollars in interest alone each year by combining your debts. By avoiding missing any payments, you will keep your credit score in good shape and avoid late fees and penalties.