When you have a bad debt, it makes a big hit on your credit history. This can be a big problem, especially if you need to get a credit card or a loan. In fact, credit history can effect pretty much anything you do in financial world, including mortgages, buying a car, and being able to take out a much needed loan. Therefore, you should do whatever you can to make sure that you'll be able to pay off debts you have.

To prevent bad debt, you should first minimize number of debts you incur to begin with. For instance, if you can possibly avoid buying something, then you should wait until after you've saved money for it, instead of buying on credit. If you already have a lot of debt, then you should look at some of debt solutions, for instance, debt consolidation.

Then, a cash out refinance loan may be best for you. Of course, best way to tell is to actually sit down and do math. These are just guidelines; real test is in math. You can consult a refinance calculator and a home equity loan calculator and figure out which one will save you most money in long run. Compare total amounts you will spend in interest and fees. If you are planning on a cash out refinance, make sure that you are refinancing with a low enough rate to justify fees to refinance. Your loan specialist should be able to help you figure out which one is best for your needs.

For a list of recommended Refinance Lenders or if you would like to use a mortgage calculator to help you compare a home equity or refinance loan for your cash needs, click here: www.abcloanguide.com/refinance.shtml