Refinancing Credit Card Debt

We are trying to refinance to fha to get out our equity to pay off huge credit card debt instead of bankrupcy (chapter 13). Once we get the money we owe 8 credit cards money totalling 48,000 dollars at 23%. Will they negociate with us so we can pay less - we are going to pay all credit cards off.
I do not want to make any payments again - we are paying these off in full if we need to . I am pretty sure I should not close them.
AT THIS TIME I DO NOT CARE ABOUT OUR CREDIT - I WILL BE PAYING CASH ONLY IN THE FUTURE. CREDIT CARDS CAN REALLY MESS UP YOUR LIFE!

in my experience they will negotiate depending upon who you use. depending upon your creditors will determine your individual ability to settle your own accounts. i tried and failed in late 2006. early 2007 i signed up with everest debt solutions and so far they have saved me from bk and i didn't have to refi my house and lose my equity in my home. so far they have settled about 40k of my total 61k owed. i used my tax return this year to help settle some of the accounts sooner they don't have a prepayment penalty. also the program can affect your credit so if you don't care about your credit this is probably the best solution for you and your family.

try and avoid refinancing your home. with our economy you may want to hold onto whatever equity you have for an emergency like a new roof or other things.

2008-06-09 13:56:34 by WM

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Consolidate it to the lowest interest rate you can get and try to make a payment every time you receive a paycheck. Also, put your entire tax refund towards it. Because of interest rates, it's better to pay off debt than to try to save money. If you own a home, you can take out a home equity loan. Just be sure not to add to your debt...I know it can be a devestating cycle.

2006-03-07 18:44:30 by george_the_cat

With no money down? This is our first home and we've owned it for 4 years and looking to refinance.

Very bad idea. You take unsecured credit card debt and a car loan and put that all into your mortgage and you'll be paying on it for the next 30 years. Stringing it out means you'll pay a lot more interest.

Many people do this but turn around and run the credit cards right back up. And of course, you will need to buy a new car long before that mortgage is paid off. Now you have that bigger mortgage and all theother debt. If you can't keep up, you could lose your home.

If you refinance, do it to lower your interest rate. That will lower your payment and free up cash to throw at that credit card debt.

2007-10-31 14:30:36 by fromthecabbagepatch

I received the announcement 2 days ago. I am waiting for response from loan company because I am not sure what is going on. About two weeks ago I asked them to give me a status of all the checks that had been sent out because I had not been receiving many acknowledgements of paid in full notices. Should I be calling a lawyer? Please advise.

This happens all too often when you rely on the refi company to pay off your debts. It is always best for you to receive the checks for each individual company to be paid off + a check in your name for any excess funds. Then YOU can mail those checks to each individual company. At least then you know that they were actually sent.

The delay could be something simple (but deadly) like they had a typo in the company's address and it's sitting somewhere waiting for disposition. They may have mishandled the check to or it's sitting on the desk of someone who has left the company or is on vacation, etc.

If you don't get answers from the company, I would contact the Attorney General's office in the state the company is doing business in. Any company that handles people money has a "fiduciary responsibility" to assure that money is handled and directed correctly. It's a federal offense that could cost that company a forensic audit if enough complaints are received by the Attorney General's office.

2007-08-17 10:04:58 by lct7192000

We have a high balance on some high interest rate credit cards. We own our home...I am wondering if there is any tips or info on refinancing and including our credit card debt into the refinance or debt consolidation. I don't know much about it. How much is normal to be charged for these things? What is a good trustworhy business to go through? What are my options? Am I just going to get myself into deeper debt?

Edward is right .
A home equity loan will be at a much lower interest rate and you can write the interest off your taxes.

This will be a delaying tactic unless you change your spending habits.

Cut up the cards but don't close the accounts it can hurt your credit rating.

When you do pay off your cards, they will up your limit, send you checks, etc.

Your monthly payment on your equity loan will save you a lot of money, versus the finance charge on the cards.

Find a debt consolidation company that is not-for-profit, many states regulate this business.

God bless, and happy thanksgiving!

2007-11-20 14:30:06 by ME