 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: Alternatives to a Cash-Out Refinance\n------------------------------------\nIf, like many other people, considering a cash-out refinance to take a bite out of higher-interest debt, you should know that several other options are available. Here are six alternatives to explore:\n1.  Personal loan: A lot of people take out personal loans to consolidate and chip away at their credit card debt. A personal loan, which typically doesn't require any collateral, often carries an interest rate that's lower than what's charged on credit card debt.\n2.  Home equity loan: This type of fixed-rate loan lets you borrow against a chunk of your home equity. Interest rates for home equity loans typically are lower than they are for personal loans and credit cards. Keep in mind that you'd be trading unsecured credit card debt for debt that could jeopardize ownership of your house if you're experiencing financial trouble the same way you would with a cash-out refinance.\n3.  Home equity line of credit (HELOC): Similar to a home equity loan, a HELOC allows you to tap into your home equity. But these two loans differ in one key way. A home equity loan (like a cash-out refinance) gives you access to a lump sum of money, but a HELOC gives you a line of credit that you can borrow against whenever you choose. In that regard, a HELOC is like a credit card.\n4.  Debt snowball and debt avalanche methods: These two approaches can help you get out of debt. With the debt snowball method, you initially focus your energy on paying down the cards with the lowest balances before moving on to those with the higher balances until all of your credit card debt is erased. The debt avalanche method prioritizes paying off higher-interest debt first, then moving on to the lowest-interest debt.\n5.  Help from creditors: When you find yourself drowning in credit card debt, one of the smartest things you can do is to contact your credit card issuers. You might be able to negotiate a reduction in your interest rates, lower monthly payments or paused payments in the quest to ease your financial burden.\n6.  Credit counseling: Feeling crushed by your credit card debt? Then it might be time to reach out to a nonprofit credit counseling service. One of the service's specialists can assist with debt management, debt consolidation or debt settlement, all of which can put you on the path toward being debt-free. A specialist also can work with you to come up with a household budget. END