If you've gone overboard on your spending limits and only have a little to squeeze out of your budget, but not enough to make large payments to get out of debt, you might consider applying for a new credit card. Use the new credit line to disperse funds and bring down your other debts. This is wise in that it will help your credit scores by distributing debt over more credit lines and paying down maxed out lines.

But if your credit has dropped too low over the last few months or years, you may not qualify for new credit. It's very difficult to get a new credit line with a 580 credit score, late payments or new collections.

If you are in serious danger of your debts getting too far out of hand, and you've owned a home for a while with some equity, you can get pay off debts with a debt consolidation refinance loan – even with low credit scores.

Imagine paying off a 19-24% interest rate credit cards, or large medical bills in one quick shot with a home refinance, at a normal mortgage loan interest rate (now between 6.5-10%)

Refinance loans to pay off debt are very easy to obtain, even with low credit scores (580). The items you choose to pay off with the equity from your home, is built in to automatically pay off your creditors. If your debt to pay off isn't excessive, you're monthly payments may not increase by much. Of course you will have closing costs to consider, but that can be financed with the loan as well.

A good mortgage broker can prequalify you with a fairly accurate rate quote, tell you which items you can pay off with the refinance and how much your new monthly payments will be.

Compare the new monthly payments with the old payments plus all of your payments on credit lines you're paying off, and see if it doesn't save you money each month.

Another advantage of paying off debt with a refinance is that your credit will improve, meaning that for all credit you attain in the future; you will qualify for lower interest rates. Consider this also if your monthly payments will come out to be slightly higher. It could save you money in the long run.

To find out if you can save money with a debt consolidation refinance, go to AmericanLoan4Life.com and fill out the 1 minute application. A loan representative will contact you and go over your situation and give you all of the details.