If you have multiple debts, consolidation may be the answer. One monthly payment can be easier to manage than several. What’s more credit cards are charged at a higher interest rate than most other loans, so it may be worth paying off the debt with one hit and switching to a cheaper rate. One option is to consolidate your debts into your mortgage.
WORD OF CAUTION
While it makes may make sense to consolidate your entire debts into one single loan be careful that you do not find yourself back where you started if you don’t take control of your finances. So if you are concerned about rising debt levels in your household – what can be done to regain control?
CUT UP THE CREDIT CARD
Or at least pay it off monthly so you don’t incur any unnecessary interest charges. Credit cards are designed to keep you paying interest for longer.
WORK TO A BUDGET
Look for where your dollars have been spent by recording what you spend each month. Once you know here the money is going you can set a budget to keep you on the right track. If you have any surplus income – use it to pay off your mortgage.