Posted by Gail | Filed under Credit Wise, Home Buying, This & That Everyone wants to know whether or not to consolidate their consumer debt onto their mortgage.Well, it depends on whether you’re doing it to reduce your interest costs, or to buy room on your credit card so you can keep shopping!R wrote: When purchasing our home four years ago, we decided to get a bridging loan (I still don’t understand how it works).

To our dismay and four years later we are still paying off this equity loan.

We are now at 26,000 (down from 56,000) – We increased our payment to 1,500 a month, but I am so fed up of paying this money, because its 1,500 we could use on other things, like vacations or retirement.

I am wondering, when our mortgage comes up for renewal (May 2010) we would then owe around 12,000 on the Equity Loan.

Do I continue to keep paying it off monthly or should I add this money to our mortgage just to get rid of it.

Right now we have a variable mortgage at 2.25 %interest.

I am now 50 years of age, and really want to get our mortgage paid off. No one is richer than they think, but it sure is a great way to convince people to borrow more money, isn’t it?

So I am not sure if adding the left over from the Equity Loan to our mortgage is the right thing to do. If your mortgage rate is lower than the equity loan rate, consolidate to lower your costs. Slap as much on the mortgage as you were paying for debt and mortgage payments together and you’ll not only save money, you won’t add to the length of your mortgage.

K wrote: I have 0,000 equity in my house, but have ,000 in credit card debt.

Question: Should I apply for a loan to clear the cc debt all at once (using home equity as collateral) or just keep paying it off as agressivly as possible (currently paying around 00 a month)?