Refinance Credit Cards Debts
Refinance home to get out of high credit card debt?
I owe $145,000 on my home which appraises for $182,000. I have $17,800. in credit card debt. My current rate is 7.75% and I still have 29 1/2 years left on my mortgage. Do you think it would be a good idea to refinance my home for $172,000 at a rate of 6.6% to relieve myself of this debt that never seems to go down. My mortgage would go up about $140 a month and my overall savings would be about $350.00 a month by paying off my Credit Cards. I’m not sure if it’s a good idea and any advice would be greatly appreciated. If I go through with this I plan on closing all Credit Cards except for one. Thanks.
What you are proposing is one reason for the mortgage crisis, pouring all our debt into our homes. . . . .leaving little or no equity in home. . . .
It may be possible. . . .start with your current lender first, but check out at least one other. . . . .IF you refrain from using your charge cards it can be a good deal for you. . . .It would be an even better deal, IF you were to take $200 of the $350 you’re saving, and make extra principal payments, thus building up your equity in your home more quickly. . . .and you’ll still be $150 ahead. . . .the first 10 years with a mortgage almost all your money goes to interest. . . .putting extra into principal will shorten your loan and significantly decrease the money you pay in interest over life of loan
If you can’t do this. . . . .then just start throwing every penny into paying off your debts. . .show restraint in spending. . . .you can do it
Dateline NBC – Credit Card Debt Trap Part 1 of 10
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