High-interest debt – such as credit cards and personal loans – can be challenging to manage and pay down. The high-interest rate tacked onto many types of loans makes it very hard just to pay the interest portion of the debt, let alone the principal. As such, these high-interest loans can get in the way of achieving financial freedom.
That said, there are ways to tackle these types of debt. If you currently own a home that has a certain amount of equity built up in it, you may have a solid source to help you better manage your debt.
More specifically, consolidating high-interest debt into your mortgage can be a great way to finally whittle down your outstanding balances.
Debt consolidation can be done through refinancing or home equity loan.