Debt elimination - "Can I really use my mortgage to eliminate my debt? Where does it go?"

For an added monthly cash flow savings for a few years, consider refinancing into a loan with a minimum payment option when you consolidate your bills. By paying off your monthly debts and reducing your monthly minimum housing payment at the same time, your savings can be even more dramatic than through standard debt consolidation alone.

Zero interest credit cards are a nice alternative to refinancing, but keep in mind that most zero percent offers only last 6-12 months. After the introductory period your interest rate will go back to the high interest rate.

It's not so much about eliminating debt as it is about managing debt. Large corporations do it, municipalities and governments do it and it is also important that individual households do it. Merging high interest, non tax deductable debt into lower interest, deductable mortgage debt often makes tremendous sense for a homeowner.

Keep in mind that debts such as credit cards carry compounded interest. Interest is compounded and increases if the balance is not paid in full, making it difficult to manage your finances.

Many people believe that zero percent or no payment financing, such as that offered by electronics and furniture stores, is an excellent buying opprtunity, however these types of financing can be very bad for your credit. This is because one your credit, these deals look like you have a maxed out line of credit, and are making no payments on it. That new home theater or dining room set could drop your credit score dramatically! If you must take out deferred payment (e.g. No Payments for 12 Months!), try to make a small payment each month to show regular payment activity on the account. Your credit will thank you for it!

Absolutely. not only will it give you fast results, but you can also reapply your savings and become completely debt free in as little as 5-7 years.

Yes! There are several debt consolidation programs available to take your high interest credit cards and car loans and consolidate them into one lower interest and possibly tax deductible loan.