It is especially important for homeowners to manage their debts in a rational manner. Managing your debts wisely will not only save significant sums of money on a monthly basis, it can put you in a position to obtain a lower interest rate and payment when you refinance your present mortgage or purchase your next home.

Many new homeowners find that the first few months after a home purchase can be very expensive. It is not unusual to spend several thousands of dollars purchasing furniture, window coverings, and other household items. Many times these purchases are financed through credit cards. Unfortunately, credit cards can be the most expensive way to build-up debt.

Excess credit card debt can lead to the need for debt consolidation loans. Though these loans tend to lower your overall monthly payments, the interest rates are still high and the interest payments are not tax deductible. Typically, only a home-equity loan is tax deductible^* and the payments on a home equity loan are lower than most other financing instruments. This is because rates are lower on secured debt and the payment is spread over a longer period of time.

If you’ve run up a significant amount of unsecured debt since you purchased your home, you may want to consider a home equity loan. A few moments on the phone can determine whether you can be helped with this useful financing tool.