Debt consolidation is a method to pay off your debts easier and faster. In this method you take out a single loan at lower rate of interest to pay off debt. Then you can pay back this single loan with time. The advantage of this method is that you are able to consolidate your debts into single monthly payments. You can use the cash from cash-out refinance to consolidate your debts. Since the interest rate on cash-out refinance is lower than other forms of unsecured loans you end up saving a lot of money in the long run on interest payments.
Why should you opt for cash-out refinance?
There are various advantages of cash out refinance. These are listed below.

• Large amount of cash – Cash-out refinance can provide you with a lump sum amount of money which you can use to pay off debt or other financial purposes.
• Easier to obtain – Cash-out refinancing is easy to qualify for as you already own the home against which you are taking money. In most of the cases you probably owe less than the actual worth of the house.
• Entitled to tax benefits – Cash-out refinancing can entail you to significant tax benefits if you use the loan to pay off your other debts on which interest is not tax deductible.
• Lower interest rate – Most of the times when you are refinancing, you tend to opt for a larger loan amount on which you can get a lower rate of interest. Thus not only do you get cash in hand put you also end up paying lower interest payments on your mortgage.

Thus you can see how cash-out refinance is a viable option to pay off debt.