There are many good reasons to refinance your debts and a home equity loan is one of the main vehicles for achieving a good outcome from this exercise. Typical uses for home equity loan refinances are to take additional debt and at the same time restructure all existing short term debts.

The remaining periods on existing short term debts such as; car loans and credit cards and personal loans etc. can cumulatively require a high monthly amount to meet their agreed instalments, whereas when combined with a new debt, in the form of a Home equity loan, at a lower interest rate and over as longer term, can make a new lower combined monthly payment. So it can be cash flow positive and reduce your total monthly outgoings.