How to Consolidate Bills Without Taking Out a Second Mortgage

There are numerous ways to consolidate bills and simplify your finances. Homeowners typically consider a second mortgage or home equity loan to pay off debts and improve their credit rating. Unfortunately, not everyone qualifies for a second mortgage. Obtaining one involves having adequate equity and being a homeowner. If you don't qualify, consider other methods of bill consolidation.

Instructions

1

Transfer balances. Apply for a low-rate credit card and move your existing credit card balances to the new card. Combining your debts at a lower interest rate saves money and helps you pay down debt sooner.

2

Consider a debt consolidation loan. If you own your vehicle outright, consider a secured debt consolidation loan and use your car title as collateral for the loan. Lenders allow other types of collateral such as electronics and jewelry.

3

Refinance your mortgage. Speak with a mortgage lender and discuss refinancing your mortgage and borrowing cash from your equity. Use the cash taken from your equity to pay debts.

4

Work with an agency. Use a non-profit debt consolidation agency to obtain a lower interest rate on credit cards and combine all your bills into one low monthly payment.