Consolidate

My Credit

Card Debt

Consolidate My Credit Card Debt

What Is The Benefit?

Consolidating credit card debt is by far the most popular reason for a cash-out refinance. Credit card debt often comes with very high interest rates (10-20%+) and the minimum payments often do nothing to pay down the balance.

With a cash out refinance, you can pay off all your debts, save (often few hundred dollars per month), and skip having to keep track of 8 different due dates. A cash-out refinance is an ideal choice for many consumers especially given the recent substantial home equity increase.

Here’s a breakdown of how you can take advantage of your equity and benefit froma cash-out refinance:

Traditional Credit Card

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High Interest Rates: credit card debt often comes with very high interest rates (10-20%+) and the minimum payments often do nothing to pay down the balance

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Multiple Monthly Payments: by having multiple open credit cards, keeping track of several due dates for each credit card can be a hassle and may increase the risk of missing a payment

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High Balances On Credit Cards Can Cause Low Credit Scores: the credit scoring model considers the amount of credit used vs. available credit

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Having Numerous Credit Cards With High Balances Can Lower Your Credit Score: the credit scoring model considers the amount of credit used vs. available credit

Cash-Out Refinance

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Pay Off All Your Debt & Lower Your Monthly Payment: with a cash out refinance, you can pay off all your debts, save (often few hundred Dollars per month)

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Low Interest Rates: mortgage interest rates are typically lower than a credit card

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Credit Score Boost: often we see credit scores jump 50-100 points within a few months after consolidating debt with a refinance

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One Monthly Payment: the funds you borrow to payoff your credit cards will be consolidated into your mortgage loan so you don’t have to worry about making payments to another lender