Homeowners at the end of their rope with too many debts to pay off may turn to a second debt consolidation mortgage, which consolidates all their debts into one payment — the mortgage payment. Through a bad credit debt consolidation mortgage, other loans are paid off by the mortgage company, and the homeowner makes repayments to the mortgage company. This is a quick and relatively easy answer to mounting debts, but there are two drawbacks to bad credit debt consolidation mortgages.

Number one, if you donít have enough equity in your home (the difference in the purchase price and todayís price) you wonít have enough money available to cover your debts. It is somewhat like a home equity loan, except that in that case, the equity is available at the time of purchase. Foreclosed or auctioned homes usually get these kinds of mortgages, because they typically have a great deal of equity in them.

If you take out a bad credit debt consolidation mortgage, you will be paying for all absorbed debts for the duration that it takes to pay off your mortgage. This means credit card purchases, etc., will take as long to pay off as your mortgage.

Change Your Spending Habits

Donít go too far in including other loans and credit card debt into your bad credit debt consolidation mortgage, if you are qualified for one. Remember that the major part of your home equity would already be factored into your bad credit debt consolidation mortgage; it may be some time before you can obtain any more funding through a home equity loan.

Once youíve been approved for your bad credit debt consolidation mortgage, your mortgage company will send the appropriate payments directly to your other creditors. Watch that the payments are made before their due dates, and be sure you keep record of the payments being made. After the payments are made, your credit report should also reflect the changes. You donít want your bad credit debt consolidation mortgage to not work for you.

Before you decide to take a bad credit debt consolidation mortgage loan, consider whether or not you really want to pay off your credit card purchases for the next thirty years.

If you need a simple and easy, step-by-step kit to get you out of debt once and for all, be sure to reference Suze Orman credit reports. Suze has put together a world class software product that anyone can follow and climb their way out of debt easily.