If credit cards are becoming more difficult to pay off, you may want to consider consolidating your high rate loans and using the equity that you have in your home for a second mortgage. Often times it can be much more cost-effective to roll your debts into a single loan than to continue paying high-interest rates on multiple and various accounts. When you consolidate, your monthly payments will often be less because they are secured by your home and are usually at lower interest rates than most credit cards.

Taking out a loan against the equity in your home to take out a credit line has also become a popular way to go. Some HELOC’s may provide you with large amounts of cash at relatively low interest rates and may even provide you with tax advantages. If you’re not looking to take out an equity line you can take out a second mortgage installment loan. Any money that the second mortgage issues is usually loaned as a lump sum and offer fixed interest rates and fixed payment plans.

Your credit score is made up of various factors in your credit file. Credit bureaus look at the extensiveness of your credit history, the number of open accounts, and types of accounts. The higher your fico score the less risk you are to banks and the lower the interest rates you are offered. Another way some homeowners clean up their credit is to take out a second mortgage and pay off debt, collections, and judgments.