Some homeowners begin to investigate refinancing for the purpose of debt consolidation. This is especially true for homeowners who have high interest debts such as credit card debts. A debt consolidation loan enables the homeowner to use the existing equity in their home as collateral to secure a low interest loan which is large enough to repay the existing balance on the home as well as a number of other debts such as credit card debt, car loans, student loans or any other debts the homeowner may have. Most of homeowners doesn’t realize how much they can save their money and their time by consolidating their debt into one. They can even save up to twice of their saving.
Additionally, debt consolidation can also simplify the process of paying monthly bills. By settling of all of the other commitments, Homeowners can focus paying only her mortgage not needing to go other banks to settle of their debt.