Eliminate Mortgage Credit Card Debt

is it possible to join my bad credit amount to mortgage so i eliminate credit card debt ?

The answer is at your fingertips. Do some searches and see if you can find what you are looking for then make an informed decision.

2007-01-05 22:23:06 by pamela g

Utilizing the system available through Xodus Debt Solutions you can pay off your consumer debt and potentially save thousands in interest. It is ...

I have about $30,000 in credit card debt due to a layoff (I am otherwise highly responsible). I have 30K in home equity.
I have very good payment history on my credit (I make double payments on my car, 10X the min. on my ccds). For the last 2 years I have played the credit card companies against each other with 0% interest offers. However, it appears my luck has run out because now they wont give me large balance transfer offers anymore. I have been sending about 2K per month towards credit cards so I have plenty of excess monthly income. My other 0% offers expire in Nov. Is it time to re-mortgage my home to eliminate that debt (I cant do home-equity in Texas)? Is it worth the closing costs and higher interest rate (current rate 5.15%) to take that route? As it currently stands, the 30K will be gone within 2 years without the re-fi the house. Please advise. Thanks!
To the person who said: Don't Carry Credit Cards. When you have to be laid off for 1.25 years and you go from a 6-figure salary to 1/4 of you are used to working freelance, thats when you HAVE to turn to credit cards. That was what they were CREATED for.

You strike me as being an ideal candidate for paying off credit card debt through refinancing your mortgage. The main reason financial advisers caution against this strategy is that many people pay off the credit cards temporarily only to run up huge balances in a few years. But you've shown yourself to be a responsible borrower who got into debt because of exceptional circumstances. In the meantime your current strategy of transferring balances to 0% cards has run its course and you are looking for an inexpensive alternative. I see no reason not to pay off the cards through a cash-out refinancing. Go for it.

2007-06-30 15:12:57 by Esmeralda

My 48 y/o sister has asked me a question and I don't want to give her bad advice. Here's her question and her stated financial info:

Should they pay off balance on their 8.25% (prime for life) credit card (with a long and excellent credit history) and put that balance towards their home equity loan? Both have high FICOs.

They currently have a 1st mortgage of $200K fixed at 4.25% until 5/09. They also have a fixed (locked in) rate of 7.65 on their home equity line at a 10-year term with a current balance of $50K ($18K avail). Their home is worth between $550-580K. They only have one credit card they use, but it's $12K (prime for life) currently 8.25% and she makes at least double the monthly payments in an attempt to pay down. They would like to eliminate the credit card debt if possible to be able to save more and not feel so stretched each month. Plus one teen now needs a car (more outflow).

Banker will lock addt'l draw and combine both for 7.6%. Yearly income $90K. Advice?
Forgot to mention that mortgage is $1375/month, she pays $700 on equity loan (min $685), and she pays $700-1000/month down on the credit card. If CC was eliminated, the banker told her the new lock on the equity loan would make that monthly payment $763, which she could also pay more down on with no penalty. She's really nervous about fooling with the equity in the home because of their old(er) age. Should she keep things as is and pay down aggressively or transfer to current home equity or other great idea? Thanks again.

That Home Equity Line is almost maxed out. I wouldn't recommend transferring the credit card balance to the Equity Line at this point because that only ties up monthly cash flow. Because they'd be paying back interest and principal over that 10-year term on the Equity vs. a couple % on credit card balance of minimum monthly payment it wouldn't be worth "saving" .6% of interest on the balance. There's also the inherent risk of running up the credit card balance again which would put them in a very tight situation.

I think in this situation what they're currently doing is fine. Keep focusing on paying down that credit card debt though and keeping the balance from growing instead of shrinking.

Good luck.

2007-09-06 12:27:31 by Bella

I own my home. My first mortgage is $380,000 my second mortgage is $90,000. I have approx $60,000 in unsecured credit card debt (approx 12 accounts). My home has dropped in value by about $40,000. What are my options? I would like to eliminate all my credit card debt and have at maximum 3 accounts to lower my monthly payment. (1st mortgage, 2nd mortgage and other debt).

Does anyone have advice on how I can do this? My credit score is 670.

Thanks

you have only one good option

have a family conference and tell everyone we are

DOWNSIZING a LOT

get rid of anything you really truly do not need that has a monthly charge.

cell phones
internet service
cable tv
2nd car unless it is really needed for the wife to get to work
both look into public transportaton.
lawn service if you have it

if your house is not worth what you owe i would not advise dumping it right now.

if you did this and throw all of the money toward credit cards starting with the highest interest and work your way down you could get all out of debt in a few years.. do not worry about your credit score -- you will not be seeking any credit in the near future.

good luck and keep us posted when and you get back on the interent

2007-08-05 11:18:28 by showmethemoney

I have read in many places that debt such as credit cards and mortgages can be eliminated. Can someone find any truth in this theory? I read it can take about 2 months.
Thanks

You are obligated to pay off your mortgage or loose you home. The companies that talk about eliminating debt are robbing you, and are scams.
The best way is to eliminate your credit cards, and work from a monthly budget.

2008-01-01 11:11:35 by alf.grant