Drowning in Credit Card Debt? Use a Cash-Out Refi to Save Thousands in Interest
If you’re sitting on credit card debt with 20%+ interest rates, it can feel like you’re just throwing money away. But if you own a home in Wisconsin, you might have an untapped solution sitting right under your roof: a cash-out refinance.
It's a smart way to consolidate your debt, lower your interest rate, and finally break free from the credit card cycle.
🔄 What's a Cash-Out Refinance?
A cash-out refinance lets you take out a new mortgage for more than what you currently owe - and receive the difference in cash.
Example:
- Home value: $300,000
- Current mortgage: $200,000
- New mortgage: $240,000
- 💸 You get: $40,000 (minus closing costs)
That cash can be used to pay off credit card balances, fund a renovation, or give you financial breathing room.
Learn more about how it works → Fannie Mae Guide
📉 The True Cost of Credit Card Debt
| $20,000 in credit card debt | At 22% APR | With 7% Refi (Cash-Out) |
|---|---|---|
| Monthly payment | $600 - $700 | ~$130 |
| Total interest (5 years) | $13,000+ | ~$4,000 |
| Time to pay off | 7 - 10 years | 5 - 7 years |
By refinancing and paying off your cards, you could save over $9,000 - and lower your stress with one simple monthly payment.
Check out how NerdWallet compares the pros and cons of cash-out refinancing
✅ When It Makes Sense
- Your credit cards are charging 18 - 25%
- You've built 20%+ equity in your home
- You want a long-term solution - not a temporary fix
- You're planning to stay in your home for a few years
Want to understand the difference between traditional debt consolidation and cash-out refinancing? Here's what the CFPB says.
⚠️ What to Keep in Mind
- You'll go through the full mortgage process again (appraisal, docs, etc.)
- Your monthly mortgage payment may go up
- You need to be smart about avoiding future debt
Want to explore other ways to use your equity? Check out this UHM Resource Center on Equity or see what the Federal Reserve says about using home equity wisely.
🏡 Local Clients Are Using It Wisely
In the past month, I've helped clients in Brookfield, Pewaukee, and Waukesha refinance and eliminate $30K+ in high-interest debt. The savings? Real. The relief? Immediate.
📅 Let's Run the Numbers
I'll give you a clear, honest breakdown of your options - no pressure, just the facts.
👉 Schedule your free refinance review
📩 Or email me: azeman@uhm.com
📍 Or Contact me here
Don't let credit card interest win. Let's turn your home equity into financial peace of mind.