Debt Consolidation
If you have equity in your home, you may want to take advantage of the low mortgage interest rates to consolidate your bills with your mortgage payment. You would have only 1 easy payment per month which would be less than your existing mortgage combined with your credit card debt. This would provide some relief on the debt you have to pay every month.
An average credit card charges approximately 18% interest. Lets assume that your interest rate on your mortgage is 5%. You would actually be saving 13% interest on that outstanding balance. If you are concerned that your mortgage would increase, you could always take the extra money you normally pay on bills every month and increase your payments on your mortgage by using your prepayment privileges. That way you would be paying the same amount per month except more of your money would be going towards reducing the debt not towards the interest. You would actually build home equity sooner.
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