Consolidating credit debit or multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.
"We were property-rich and income-poor," says Jo Ann.
The couple had refinanced six years before, but when mortgage rates dropped to historic lows in May, they saw an opportunity to eliminate their credit card debt by refinancing their home and rolling $25,000 of credit card debt into the loan.
Refinancing your current home mortgage loan may help with consolidating your debt and build your credit.
Since mortgages require monthly payments, if the homeowner is paying those on time, it can help boost his/her credit score, which is a benefit to refinancing.
"The theory of turning higher debt rates (credit cards) into lower ones (mortgage) is a great idea," says White in an e-mail, "but it usually doesn't work because many of the people who end up in this situation have a habit of spending without conscious decision making." Gayle and Jim Mc Weeney are determined to break that habit.