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Mortgage rates have inched up over the last two to three years, however rates on unsecured loans like credit cards has risen much faster.  Many consumers have had flipped credit card debt from one teaser rate to another.  However, many people like myself have learned that this solution treats the symptoms and not the root cause.  So there are two things that we can do to fix the problem. 

First we can refinance unsecured debt under a Mortgage Refinance option.  This does transfer unsecured debt to a secured option and might be a poor choice for consumers that have debt problems that could lead to bankruptcy.  However, Mortgage refinancing can lock in a lower rate of interest, saving many consumers a significant amount of interest expense in the long run, which can help them utilize step two.

Second, we need to stop using credit cards and pay off the loan balance.  The savings rate in the US is now a negative 1%.  We are truly as a group spending more than we are saving and that is a direct indication of a significant debt problem in the United States.