There are people who are more than willing to help make your debt disappear. We have all seen these advertisements on TV, in the newspapers and in our mailbox.
How do they plan to make your debt disappear? By lending you money. Not only that, they want you to borrow against your house to pay off your cars, credit card bills and what ever else you owe money on.
A lot of people are falling into the “disappearing debt” trap. Problem is the debt does not disappear. It stays with you a lot longer by increases your home mortgage.
They tell you that it makes sense to refinance the house to pay off high interest credit card debt with a low interest home mortgage. What they don’t tell you is that you are now paying several more years on your house to clear up what should be short-term debt.
The things you bought with credit cards before the home mortgage refinance will have worn out long before the house is paid for.