Consolidating Debt Through Refinancing a MortgageArticle Posted by Expert Author: Tony Caro on 04/08/2013
No one likes to be mired under the crushing burden of mounting debt. However, various problems can arise that can cause a debt situation to spiral out of control. For many, mortgage refinancing may be sought as a way of consolidating debt. In such a process, two mortgages, mortgage related debt, and even non-mortgage related debt can be combined under such an umbrella. There are both positives and negatives to doing so. (CNN Money covers a few of the pros and cons of consolidation and mortgage refinance.) The main positive would be the ability to pay off debt quicker and at a lower interest rate. The main drawback would be consolidating debt is never always a guarantee for eradicating the problems you may be facing. Further debt issues could arise or, worse, increased irrational spending could undermine the potential to get your debt under control. However, with the right approach to addressing your debt situation, consolidating debt through refinancing a mortgage can prove to be a wise move.
The Refi Guide can help you answer a lot of questions regarding this important issue. You don't want to make poor decisions regarding your financial situation during this tough economic stretch in history.
Article Posted In: Useful Articles Understanding the Refinance Process