Refinancing and consolidating debt

The couple had refinanced six years before, but when mortgage rates dropped to historic lows in May, they saw an opportunity to eliminate their credit card debt by refinancing their home and rolling ,000 of credit card debt into the loan.

Thanks to an excellent credit rating and an appraisal valuing the house at 5,000 -- four times what they owed on it -- Ray and Jo Ann managed to lock in a 30-year fixed mortgage interest rate of 4.8 percent, two points lower than before.

Providers of Care One Debt Relief Services are industry leaders committed to offering the best debt management programs available.

A debt consolidation loan is when someone borrows money and then uses that money to pay off other debts.

Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.

In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable pay-off terms: a lower interest rate, lower monthly payment or both.

The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.

Consolidation works best when your ultimate goal is to become debt-free.

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One is to consolidate all their credit card payments onto one new credit card – which can be a good idea if the card charges little or no interest for a period of time – or utilize an existing credit card's balance transfer feature (especially if it's offering a special promotion on the transaction).

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