Consumer debts such as credit card debt, auto loans, and other types come at a much higher interest rate than mortgage rate debt. For this reason, some people choose to refinance their existing debt into their home loan. This can be done via a cash-out refinance or a home equity line of credit. Either way, debt consolidation can be a great way to get your monthly payments under control and to fine-tune your finances.

It is important when consolidating debt to make sure that you make lifestyle changes. To consolidate all of your debt and then to go right back to old habits and dig another hole for yourself is a bad idea. It can also lead to spending more over the life of a loan. Make sure debt consolidation is the right thing for you.