Consolidating home and car loans

18-May-2017 17:25

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Debt is a major problem for many American households — especially those that have credit card debt in addition to mortgages, auto loans and student loans. Many cardholders pay higher rates on higher balances. households carry an average of ,762 in credit card debt, and in 2015, they paid an average interest rate of 13.66% on it.Debt consolidation is a strategy to roll multiple old debts into a single new one.Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.Like most consumers, you're probably paying off a few other debts in addition to your car loan.Mortgage payments, credit card bills, boat payments -- if only there was a way to tie all these debts together into one, easy, monthly payment.Fast forward to March 31, 2016, and it inched up only slightly, to 3.71%.

This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.

This can be very attractive, particularly to those with sufficient home equity.

But before you sign on the dotted line of your new loan or refinancing agreement, make sure you know how debt reshuffling will affect your bottom line.

Rolling student loan debt into a mortgage (also known as “debt reshuffling”), allows you to refinance your mortgage with either a new loan or an additional home equity loan.

The money from this new loan can then be used to pay off your student loan debt.

This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.This can be very attractive, particularly to those with sufficient home equity.But before you sign on the dotted line of your new loan or refinancing agreement, make sure you know how debt reshuffling will affect your bottom line.Rolling student loan debt into a mortgage (also known as “debt reshuffling”), allows you to refinance your mortgage with either a new loan or an additional home equity loan.The money from this new loan can then be used to pay off your student loan debt.Do it wrong, and you could find yourself paying out much more than before.