Refinancing to pay off credit card balances and other debts can be an effective way to streamline and simplify your debt, but it should only be done after careful consideration and with personal assistance from a mortgage expert.
Debt consolidation refinance is the process of taking that money you owe and applying it to your mortgage. While this process may help reduce the number of bills that you receive each month, it doesn’t make the debt disappear or go away.
What debt consolidation refinance does do, however, is restructure your loan to help you pay off different debts all at once from student loan payments to credit card debt. Generally, it’s a good idea to match the life of the item you’re financing with the term of the loan. For example, if you used your credit cards to finance home improvements, paying off those card balances by refinancing your mortgage makes sense.
Refinance to pay off credit card debt
- Since credit cards have a higher interest rate than most mortgages, paying off your credit cards with a debt consolidation loan could ultimately help you save more on a month-to-month basis.
- If you have many different credit cards with different rates and balances, refinancing can make it easier to pay off your credit card debt on time with one universal payment.
- Click here to get started with a free consultation and we’ll help you decide if refinancing to pay off credit card debt makes sense for you.
Debt consolidation could be a rewarding choice for you and your family. Of course, this largely depends on your financial needs both in the short-term and further down the road. Accunet has the experience to help you handle complex refinance decisions so you can make a confident choice that’s best for you.