Homeowners with a lot of debt can use remortgaging their property to consolidate debt and get back on a successful financial track.
Most debt owed by borrowers is in the form of credit card debt, which is "unsecured debt". If not paid it can result in a blow to one’s credit score. The risk of carrying a lot of unsecured debt is relatively low compared to a home loan which is considered secured debt. A debt consolidation is when you obtain a remortgage to secure funds to pay off other debt.
If "secured debt" (mortgage payment) is not paid each month, then losing the home is likely. This is the biggest downside to debt consolidation. Homeowners considering a remortgage for debt consolidation should make sure and have a financial strategy mapped out.
Although debt consolidation can be made to look very appealing, make sure and have consultation of your situation by a remortgage expert to make sure it is the right fit for you.