Would you benefit from consolidating your debts through a home equity loan or a cash-out refinance of your mortgage? It takes all of your current monthly debt payments and compares them to what you'd pay if you rolled them into a mortgage consolidation loan.
This allows you to pay off those debts more quickly while still paying down your regular mortgage over a longer period of time, without combining the two.
The downside of using a mortgage for debt consolidation is that you're putting your home on the line.
You can't lose your home if you fail to pay your credit card bills or auto loan, but you could be foreclosed on if you fail to keep up your mortgage payments.
So keep that in mind before boosting your mortgage debt.
» MORE: Follow these 3 steps to pay off debt Two additional ways to consolidate debt are taking out a home equity loan or 401(k) loan.
However, these two options involve risk — to your home or your retirement.
In any case, the best option for you depends on your credit score and profile, as well as your debt-to-income ratio.
» MORE: 4 ways to consolidate debt Use the calculator below to see whether or not it makes sense for you to consolidate.
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Our partners cannot pay us to guarantee favorable reviews of their products or services. " At Nerd Wallet, we strive to help you make financial decisions with confidence. Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower-interest payment.