Refinancing to consolidate debts
Many people choose to use their home loan for debt consolidation because it offers a very low interest rate. If you’re struggling with multiple debts like a personal loan, a car loan and perhaps a few credit card balances, consolidating your debts will in most cases reduce your overall monthly repayments and allow you to make one monthly repayment instead of several as you will be now dealing with one lender.
Please note however that debt consolidation can also turn a short-term debt like a personal loan into a much longer term debt (your home loan). Unless you aim to make extra repayments where possible, you could end up paying more interest over the life of the loan.
Finally, make sure you use the extra savings to further pay down debt and don’t be lulled into a false sense of security and load the credit card up again, simply increasing your overall debt further.