Do you want to consolidate your debt? Regardless if it is credit cards, student loans or car loans you can save a lot of money every month when you consolidate debt into one low payment.
Home equity lines of credit, commonly referred to as HELOCs, and second mortgages are very common types of loans to consolidate debt. Home equity lines will allow you to use the equity in your home as you need it and only pay for what you use, while second mortgages will provide you with the amount of the 2nd mortgage up front in one lump sum. However, both of these types of loans will be secured by your home, generally offer a lower interest rate than your credit card debt, and provide a end of the year tax deduction (in most cases). Many people also like the convenience of being able to have one low monthly payment instead of numerous monthly payments spread out across many different bills.
Why would anyone want to roll credit card debt into one's mortgage? If folk only make the minimum payment on their credit cards then it will take a very long time to get the card paid off. Most of the time folk get a new card is because of some promotion going on - 10% off this purchase, low starting rate of 3%, etc. When one makes a late payment on a credit card that wonderful starting rate becomes a horrible 18%, 22%, even up to 30% rate. It could take up to 30 years to pay these off. These are definite reasons to roll these cards into your mortgage to get all the tax advantages one is allowed by law.
When you consolidate your credit card debt into your mortgage, the interest you were paying becomes tax-deductable at the end of the year.
When your debt gets consolidated make sure your know where the extra cash flow is going. If you are going to spend it on more doodads, then rolling your debt into your home isn't a very good idea. If you are going to save and invest the additional cash flow then this is an excellent idea. The money you save and invest off of consolidation of debt can in some instances help pay off your debt much quicker and more efficiently.
Pulling cash out of a property to pay off credit card debt and any other secured or unsecured debt is an excellent strategy for homeowners who are capable of curtailing their spending once the balances are all paid off.
Discover your potential monthly savings by combining your bills into a single source. Eliminate high interest rate credit card by rolling everything into one low monthly payment.
Credit cards come with outrageous interest rates. Rolling that debt into your home loan, can greatly reduce your monthly payments yet maxmizing your tax deductible benefits of home interest deductions.