If your debts are becoming hard to manage, and you are looking for a way of reducing monthly payments, consider debt consolidation. There are several methods of consolidating debt, but perhaps the best one is to use the equity in your home. The value of your home is likely to be higher now than it was when you bought it, so there should be some equity built up for you to use. The monthly payments you have been making have also been reducing the principal balance of your mortgage and increasing the amount of the available equity in your home.
If you get a home equity loan, you can use the money for consolidating debt and paying off your credit cards as well as any other loans that you have. The interest rates you are paying on credit card loans and other unsecured loans are probably higher than the rate you could get for a home equity loan. When you get a home equity loan for debt consolidation and pay off your other bills, you will be reducing monthly payments because the interest rate will be lower, and you will have only one payment to make instead of several. That one payment will be considerably lower than the sum of all the payments you were making.
You will save time and get a better deal if you consult with a mortgage specialist who can find the best loan for you. A mortgage specialist will check with many different lending institutions to determine which one would be able to give you the best rate and terms for your needs. You will be amazed when they show you how much money you will save in the end by consolidating debt now.
After you succeed in reducing monthly payments by consolidating debt, it would be wise for you to make a commitment to contribute to a savings and retirement plan. Use part of the difference between what your bills previously cost and what they cost after your debt consolidation to make the contribution. Because people tend to be creatures of habit, it would be a good idea to get into the habit of saving some money each month. Since you have been accustomed to spending a certain amount on all your bills every month, make an effort to save part of the money that used to go toward paying bills. You will have more peace of mind and ensure a secure financial future when you deposit regularly into a savings account and retirement plan.