Many homeowners use their mortgage as a tool for consolidating debt, especially if they have high-interest obligations. By refinancing, you can combine your debts into a single, lower-interest mortgage payment, making it more manageable.

Advantages:

• Mortgage interest rates are typically lower than those for credit cards or personal loans.
• Simplifies monthly payments by consolidating multiple bills into one.
• Mortgage interest may be tax-deductible in some cases, potentially offering tax benefits

Disadvantages:

• Psychologically, debt consolidation can feel like the debt is gone, which might encourage overspending.
• Putting debt into your mortgage puts your home at risk if you’re unable to make payments.
• Refinancing comes with costs that might be burdensome, particularly if you're already in financial distress.