Should I Refinance to Consolidate my Credit Card Debt?

Help Get Us Out of Debt

If you are considering refinancing your home or taping into your equity for cash in order to consolidate existing debt, the new 2019 loan limits will come as good news for you.


Refinancing your home can be an effective method to consolidate debt.  However, when you refinance for this purpose, this type of loan is referred to as a “cash-out refinance” and in most cases you are limited to only 80% of the value of your home.


Assuming credit scores are acceptable, the two pieces of information that impact how much cash you can receive from refinancing are


  1. the appraised value of your home and
  2. the conforming loan limits (see here) adjusted each year by FHFA.


As of 2019, the base amount for conventional conforming loans has been adjusted to $484,350, up from $453,100 in 2018.  This means that if your home’s value supports it, you’ll have access to an additional $23,200 that can be tapped for debt consolidation.


Refinancing to convert high interest credit card debt or other debt into low interest mortgage debt can be a good strategy for getting your finances in order.  Here are just a few benefits:


  • Refinancing to consolidate debt will provide a sense of relief knowing that high interest rate debt has been eliminated


  • Paying off revolving debt can positively impact your credit score by improving your utilization score


  • Eliminating those monthly credit card and car payments can free up cash flow to be used elsewhere.  Perhaps consider using a portion of that extra cash flow to make additional principal payments on your new home loan?


Through years of analyzing and restructuring finances for individuals and businesses, I have the expertise to help you with refinancing to restructure your debt.


Call me at (714) 403-2603 or send an email message to for a no pressure conversation about how I can help you restructure your finances to achieve financial peace of mind.

Leave a Comment

Your email address will not be published.