It sounds like such a great idea, but is it really? That depends on how you use your money. If you don’t change the habits that got you into credit card debt already, you might just be digging a bigger hole for yourself.

The idea behind refinancing is that you can get your credit card debt to have a lower interest rate. However, what many people forget is that they are trading unsecured debt for secured - that is, risking their home to pay off their credit cards.

The danger in this is that many people go back and charge up the credit cards, restarting the cycle of credit card debt. Their debt load becomes higher and more difficult to be rid of.

If you want to refinance your home to cover your credit card debt, it may not be a bad idea, but review your spending habits first and put those credit cards somewhere that they won’t be such a temptation. Healthier spending habits will help you and your family tremendously in the long run.