Homeowners debt consolidation option #1

If you have some equity built up in your home, then you can refinance your first mortgage in order to help pay off debts.  Usually this is a great place to start because the interest rate is lower and will help you save more money.  However, one of the things that people do not understand is that once they pay off a credit card with this option they need to never use it again.  Cut up the cards and let them go.

Homeowner debt consolidation option #2

Another option for those that do not have enough equity is to use a second mortgage to help with your debt consolidation.  This is not as good as a refinance, but is an option if a refinance is not possible.  The rate will be higher, but should still be low enough to save you some money and get your debts under control.  Regardless of what you do you need to know that if you use your equity to help you will get a lower rate and you will be able to get what you need to consolidate your debt with your home.

Homeowner debt consolidation option #3

Another option is to take out a line of credit. The only real difference between this and a second mortgage is that it works like a credit card.  The line of credit usually has an adjustable rate that can change over time as well so be careful of this.  This is, however, a good option to use if you have no other options when it comes to consolidating your debts.