Pitfalls of Refinancing Credit Card Debt into a Mortgage

1. Unsecured debt is converted into secured debt decreasing equity and putting the home at risk if there are further defaults.
   
   
2. Refinancing the debt can mask the reason that the debt was incurred in the first place.  Spending habits still need to be reviewed.
   
   
3. The penalty for paying late or missing a payment is more severe.
   
   
4. Refinancing short term credit card debt into long term mortgage debt can actually cost thousands more in finance charges over the long term.
   
   
5. Credit card balances start off at zero and the lines of credit are available.  Out of control credit card debt could start again, if spending habits are not changed.
   
   
6. Mortgage balance could exceed value of home, resulting in a higher interest rate and associated fees, as well as making your home unmarketable.

You can download this page in PDF format at
http://www.800debthelp.com/library/pdf/Home_Refinancing_Pitfalls_Nationwide.pdf