Just like with a debt consolidation loan, when you consolidate debts into your mortgage, you also need to create a budget. If you don’t, you’ll always be tempted to borrow more when “emergencies” happen.
Repeatedly using your home as an ATM can set you up to face retirement with a lot of debt, no assets, and no savings.
If normal banks and credit unions aren’t able to help you with refinancing your mortgage, don’t immediately turn to a home equity lender. Instead, speak with one of our credit counsellors.
Credit counsellors will help you explore all your options and put together an effective plan to pay off all your credit card debt. There may even be options available to you that don’t involve using the equity in your home.