Consolidating debt with your mortgage
What does using home equity to consolidate your debts mean?Essentially it is using the equity in your home / refinancing your home to consolidate your debts into one payment in order to pay off your debts.
This will allow you to combine them at the bank's best interest rate when they need to be renewed.
The average five year mortgage rate over the past 60 years has been 8.95%.
So if you are considering refinancing your home, make sure you can afford an "average" interest rate of 9% in the long term.
Debt consolidation is the act of rolling high-interest debts, such as credit card bills or loans, into a single, lower-interest payment.
This helps reduce your total debt amount and it is structured in a way to pay the debt off faster.