 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: Be Careful Using a Cash-Out to Pay Off Debt\n-------------------------------------------\nThe good thing about cash-out refinancing is that you can do whatever you want with the excess cash. But be careful. Most important, know that if you use your new cash to pay off other debt—like credit card debt—you are putting your home up as collateral. This means if you default on your new and larger payment, you risk foreclosure and the loss of your home.\nCredit card debt is considered unsecured, because the lender has no collateral to hold on to if you stop making payments. When you use a cash-out refinance to pay off unsecured debt, you are essentially converting it to secured debt—giving the lender collateral (your home) they can take in the case that you default. Depending on your financial situation, this move might be fine. Be sure to always make your payments on time and plan your finances ahead of time to avoid getting into a situation that could result in a lender foreclosing on your property. END