[InABunkerUnderSF]

He says if someone has three credit cards at 20, 15 and 12 percent and they also have equity in a house, they may be able to refinance their home and pay off all their consumer debt (the credit cards in this case), while also locking in a lower interest rate on their house for a longer period of time.

Institutionalizing your debt only works if you NEVER rack up a credit card balance again. I've seen so many people "pay off their credit cards" by taking equity out of their homes then start using the cards and making the "minimum payment" (AKA maximum profit for the card company) the very next month.

BTW, why would someone need more than one credit card?

[ziravan]

They pointed out part of the basics of Dave Ramsey’s plan, and then quoted someone else saying to refi unsecured debt with your home.

Dave doesn’t advise that. CON-solidation is a trap for 90% of borrowers - and Dave points that out.

Personal finances are personal. It’s not shaving a few interest points that makes the difference. It’s getting on a written budget and taking control of your money that does.