A couple of years ago I realized that somehow debt had crept up on me. More debt than I was comfortable carrying. Between credit cards, a car loan, a line of credit and a mortgage, my budget was stretched to the limit.
I started looking into consolidating my consumer debt with my mortgage. I called my mortgage broker and let him figure out if it was worth it for me or not. It turned out that refinancing, even with the mortgage penalty and lawyer’s fees, was worth it.
I worked the numbers from my broker into my budget spreadsheet and was surprised to find that consolidating my debt would save me hundreds of dollars a month.
While it’s not a good strategy for everybody, homeowners looking to reduce costs and cut back on expenses in these trying times might find that it gives them more financial breathing room.
Of course, the important thing is to realize that one has to make changes to their spending habits in general or else they’ll end up with a consolidated mortgage and more revolving consumer debt, which defeats the purpose of consolidating in the first place.
