Debt Strategies

Everyone’s debt is different, so we encourage you to learn more about other options before you decide if our program is right for you.

Cash-Out Refinance

If you’re a homeowner, a cash-out refinance could be a great tool to help you pay off unsecured debt and combine your bills into one monthly payment.

The cash-out refinancing option is best for homeowners who have a reliable income, good credit, and sufficient equity in their home. Add your debt amount to the balance of the mortgage you are refinancing, and you can take the extra cash and use it to pay off your creditors. You still have the debt to pay, but now it’s combined with your mortgage into one monthly payment.

This option could make sense for you if you have multiple high-interest credit cards because secured loans like a mortgage generally carry a lower interest rate. It also gives you the opportunity to refinance at a lower interest rate than your original loan.

This is not a solution you can do by yourself. You will need to work with a lender, as with any other mortgage refinance. Once the mortgage is approved and financed, you can use the additional cash to pay your creditors.

While a cash-out refinance can be an effective way to pay down your debt, there are a few risks to consider. Because this is a secured loan, it’s especially important to keep up with your monthly payments so you don’t you run the risk of losing your assets, which in this case would be your home.

Also, keep in mind there are many costs involved with refinancing. Between home appraisals, closing costs and other fees, you could end up paying thousands after all is said and done. That’s why it’s important to take your time and make sure the benefits outweigh the risks.

To find out if there could be a better solution for your debt than a cash-out refinance, talk to one of our Certified Debt Consultants today at 800-910-0065.

  • High interest debts paid off
  • Reduced monthly payments
  • Tax-deductible interest payments
  • Need to own a home
  • Increased foreclosure risk
  • Adds to mortgage debt

Which is the best strategy for you? Find out now.