Borrowing against your house to consolidate your debts is one method of keeping your head above water. It is a viable solution for some people and I am not going to advise against anyone doing this. But I do advise you to be careful. This could have very serious implications for you unless you have done your homework and know your personal finance basics well.
The obvious downside of borrowing against your home is if you are already struggling to repay your mortgage. You must totally understand that you are putting your home at risk. If you start to miss your payments your house will be at risk. Consider seriously if you want the bank to foreclose on your loan. You must make sure you are comfortable with the new repayments before you even consider borrowing against your house.
If you are not totally comfortable with your ability to make your new loan payments you must not borrow in this fashion. Think about selling off whatever items you have before adding to your mortgage. Consider a consolidation loan instead. Consider going to a councilor for financial help also. In these circumstances consider anything but do not extend your mortgage.
If you are in so much financial trouble you could also consider downsizing your home to ease your finances. At least until you get back on your feet. You could also try considering preparing a budget. Actually this is essential if you need to control your spending.
Another thing you may want to consider is to get a second job. Just until you get over your present financial troubles.
Your house is the biggest investment you will make in your life. You must keep control of it at all costs. A simple knowledge of personal finance basics will verify this. You must do all you can to keep your house. Visit FQF for your financial needs.