debt consolidation loan, mortgage refinancingIf you are thinking about mortgage refinancing right now, it helps to have some equity in your home. There really is a lending crunch going on now, and in order to get FHA refinancing, you need to have equity in the property. That means that you will probably not be able to refinance a home if you're upside down in it. If you're in such a home, you might consider a debt consolidation loan instead that will reduce your monthly credit card debts, and free up more income so that your credit score improves, you owe less, and you can start paying more on the mortgage monthly to bring the outstanding balance down.

A debt consolidation loan will help you eventually get out of all that expensive credit card debt and start saving money. You might eventually recoup the value of your home, too, once the market picks up. No one saw this real estate train wreck coming, so if you're in a tough financial situation, you certainly are not alone. But use the tools available to you now so you can to start building a healthy financial profile.