People often refinance their mortgages to take advantage of equity they have earned in their homes.
That extra money can then be used to pay off credit cards, or make home improvements. Wendell and Julie Russell of Plattsmouth, Neb., hoped to refinance their home to lower their total monthly payments. Last summer, a company called Northern Financial contacted them about consolidating their debt. And none of their credit cards had been paid off. Things got worse when the Russells tried to fix the problem.