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You know that by refinancing your mortgage loan, you can get a better interest rate and save yourself tons of money. Did you know that you can also help to eliminate your other debts with the same loan? With debt consolidation refinancing you can do just that! Debt consolidation is a loan that combines all or part of existing debt into a one loan. This process entitles you to save money with a lower interest rate and enables you to make one monthly payment. With a new debt consolidation loan pre-existing debts paid off and credit ratings improve. Harassing phone calls from collectors, large multiple payments and higher interest rates are eliminated. Combining debt by refinancing with a mortgage consolidation loan, a homeowner may qualify for a lower interest rate on all bills and a lower monthly payment. There may be problems as well. Be aware that taking advantage of lower interest rates on a refinance loan and lower monthly payments can extend the overall length of the loan resulting in paying more interest payments over a longer period of time. If you combine loans that originally had, for example, a 12 year repayment schedule into a debt consolidation refinance loan, you could be extending the period of repayment by as much as 30 years. The total amount of interest paid will increase based on the repayment schedule despite the lower interest rate you obtained. Homeowners need to understand that this type of loan is not without concerns. Immediate cash flow problems are temporarily decreased, but the outstanding credit debt will remain the same or even increase. A free online debt calculator will help you figure out the numbers before you decide whether a debt consolidation refinance is a good choice for you. Either way the effect will decrease payments but extend repayment. The goal should always be to have the lowest interest rate on your debt and to pay that debt as quickly as possible. Find out if your refinance allows for additional payments above and beyond your monthly payments. By making additional payments and designating that they are to be applied to the principal, you are taking steps to eliminate your overall debt much more quickly. As a homeowner with a mortgage refinance that can get a better rate of interest is a smart choice. If you have the ability to eliminate expensive credit card debt at the same time and the overall terms and conditions make it a favorable option, then it is one you should consider. By doing your research and asking the right questions, you will be in a better position to know where you stand and how you might potentially benefit (or not) from a debt consolidation refinance loan. The right option for mortgage refinancing to consolidate debt is out there! Find it!