 TITLE: Should I Do a Cash-Out Refinance to Pay Off Debt? CONTENT: Alternative Ways to Pay Off Debt\n--------------------------------\nIf you're not sure about using a cash-out refinance to get out of debt with other lenders, here are some alternatives to consider:\n*   **Debt consolidation loan**: You can use a personal loan to consolidate and pay off other high-interest balances. While the process is similar to using a cash-out refinance loan, personal loans are typically unsecured, so you don't have to worry about losing your home if you default.\n*   **Balance transfer credit card**: If you have credit card debt, you may be able to apply for a new card with an introductory 0% APR promotion and transfer that debt to the new card. A balance transfer card can be incredibly appealing because it can allow you to eliminate debt interest-free—as long as you pay off the transferred debt before the introductory 0% APR ends. Also keep in mind that you'll usually pay a 3% to 5% fee of any amount you transfer.\n*   **Ask for a lower interest rate**: If you have good credit and you've always had a positive payment history on your credit card accounts, call your credit card issuers and ask for a lower interest rate. If you're eligible, it could save you money on interest and make it possible to become debt-free sooner.\n*   **Use the debt snowball or avalanche payoff method**: The debt snowball method involves paying the minimum amount on all of your debts but focusing on paying more toward the debt with the smallest balance first. Once you've paid off that account, apply its payment amount as an extra payment to your next-smallest balance and continue that process until your last debt is gone. Another way to accelerate your debt payoff is using the debt avalanche method, which targets your balance with the highest interest rate first and usually saves you the most money over time. END