Overall scenario encourages them to provide lesser interest rack for home loans. If you have sudden financial deficits, you will dig lesser payments.The lowdown factorsHowever and barrel there are a few downsides as well.Intelligent measureSome homeowners spend a little on getting their homes revamped prior to consolidation application.Palpable advantagesWith tax benefits and reduced rates, you get few more advantage with debt consolidation. Trick is to pay 1/3 of your income on debt consolidation; 1/3 on family expense and 1/3 for savings. Moreover, government policies of Foreclosure allow them to be indemnified against home mortgage defaults. And if you are in a habit of lending, you will surely add more debts in addition to home loans in future. Thus, it is a two-edged sword. Then since your equity gets secured, you lose it if you fail to pay. Humans do not much like the idea of paying half a dozen separate loans or more on different dates of a month. This is not the case with separate and less poignant debts. You can clear out more than necessary to get rates further reduced. For instance, if you purchased a house for $500000 and have $270000 to pay on it through mortgage, then your home equity would be $230000. Consolidating all the existing loans into home loan make them liable for a single debt payment which is far less hassle-prone.Debt consolidation factsEquity is the price difference between evaluated price of the house on a given date and the liabilities remaining on them. Thus, you will find that in due time, you will have paid off much of your home loans. If you may put your equity in home as collateral, you can expect sizeable depreciation in monthly payments.. You will eventually get to pay more. Application for new home loans requires furnishing of last couple of pay stubs from your side.Psychological advantageConsolidating your various debts into your running home loan can be a nice method of bringing down the hassles related to them. Now, generally speaking, the amount of debt you can consolidate is 90 percent of the equity amount. As a first, this clubbing of loans into screw barrel material one single home mortgage allows a psychological advantage to the borrowers. Extending the case above, it means that you can club as much as $207000. Getting your property refinanced is also a smart idea prior to consolidation. Naturally, you can consolidate larger amount of existing debts in the given case. This is a clairvoyant decision as it enhances the evaluated price of the home and thus raises its equity. The best way is to let an agency or a wise person to manage your loans.What you may do as preparation?You may just be inept in handling your monetary resources