Should we looke for a 2nd mortgate to pay off very high credit card debt?
453448
Absolutely not! Don't do it. Your big problem isn't financial, it's behavioral. Most of the answers you've gotten are from financial types that have logics about least amount of interest, etc, but they're missing the issue that refinancing won't fix your habits, and you'll probably fall under the false perception that your cards are now free for more charging once their balances are transfered. \nBeen there, done that, so believe me, it will happen.\n\nFinish reading Ramsey, he's your answer.\n\nOnce of the respondants did suggest the debt snowball which is one step on the right track. \n\nWe're doing them now and they're working for us. So far we've paid $11,000+ in debt over the last 5 months, and put aside an emergency fund (and we're far from making big bucks)\n\nHere are the steps:\nPre-steps\n-get current on your debts - at least be paying minimums up to current month\n-cut up all your credit cards (yes, all of them.)\n-sit down with your family and explain that you don't want to live like this any more and that you want a better future for them. You guys are sinking and it will take a family effort to surface and eventually swim out of this mess. Once you've got their buy-in ...\n-stop paying extra on any of debts, including extra mortgage payments (we were doing this one) \n-do a simple budget to spend less and save more - we found we were spending Hundreds a month on going out to eat and see movies. Stop all that. Cook in. DVR movies on cable or get them from your library for free.\n-stop contributing to retirement temporarily or any other savings or investment accounts. Yes, even if your companies match - it's just temporary, you'll get back to investing later.\n-adjust your Withholdings through your employer to get more now and less tax return later. It's your money, may as well have it now.\n-have a rummage sale, sell any extra cars, and get out of leases if at all possible - they're a scam.\nNow - the real steps:\n1. Put $1,000 into a savings or MM account as an emergency fund (EF). \n2. Sort all your debts from smallest to largest. Pay minimum on all except the smallest. Attack that one with all the money you've scraped up (except for the EF) and your necessities (food, shelter, trasportation). Once you've paid the smallest, use what your were paying on the first plus the seconds minimum to attack that one. This is known as the debt snowball as it keeps increasing as you go. Keep it going until their all paid. Living frugally is key, during this period.\n3. Now beef up your $1000 EF to 3-6 months of expenses (not income) \n4. Resinstate future and retirement investing to at least 15% (match your companies IRA contribution, and put the rest of the 15% into Roth IRAs.)\n5. Invest in college funds for the kids if you have them \n6. Pay off the home early\n7. Build more investment and retirement wealth and start giving what you can.\n\nHope this helped! Again, don't fall into the trap of using debt vehicles to get out of debt. Pay what you owe. Live on less than you make and you'll get out of this.\n\npbaez\n\nIf you need more ongoing support, join our yahoo group Dave Ramsey http://finance.groups.yahoo.com/group/Dave_Ramsey_Debt_Beaters/
671118
Determining if consolidation loans are the right decision for you requires serious thought. As with any decision of magnitude, carefully weighing the pros and cons is important.\n\nLet’s explore the pros and cons of this type of debt solution.\n\nPros:\n\nOne payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.\n\nReduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates.\n\nLower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.\n\nOnly one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.\n\nTax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off. \n\n\nSounds great, doesn’t it? Before you run out and get a debt consolidation loan, let’s look at the other side of the picture – the cons.\n\nCons:\n\nEasy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place.\n\nLonger time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt.\n\nSpend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.\n\nYou can lose everything: Consolidation loans are secured loans. If you didn’t pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home. \n\nAs you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you.
700924
Consolidation is a good idea.....as long as you take this warning.\n\nOver the past few years, many people have gone to consolidation and home equity loans to try and cure their credit problems.  They take all their bills and combine them into one bill, which generally is going to be mean a lower monthly payment, but will take longer to pay off.  OK, so far so good.\n\nThe problem is that these people turn around and charge thing on their "now empty" credit cards.  The result is they are now twice the amount in debt.  They end up filing for bankruptcy.\n\nOver the past two years the vast majority of people who filed BK did it for that reason.  \n\nSo as long as you understand this trap, you will do ok.  Consolidate your loan, but STOP further credit spending.  Get rid of the credit cards and try to use all of your disposable income to get this new loan paid off.  \n\nOtherwise, start looking for a bankruptcy lawyer.
88573
I almost did, but found out I would be paying almost twice a much for house.  You can get non-documentation loan, but they are tricky too.  Check with several real estate agents or an attorney.
277626
It may be a good idea if you are having a hard time making payments on high-interest debt.  However if you are making the payments OK, you may actually be hurting yourself.\n\nIf one or two of your debts will be paid in 6 months to a year, you will have that extra payment available to do what you want very soon.  If you refinance, for 5 years, you might have a lower combined payment but you will be stuck with it for 5 years where you might have had a lower total payment if you had left things alone for just a few months and paid off a couple of your debts.\n\nIf you have a home and can get a home equity loan, you can take the interest off on your taxes but it also costs money to get that loan so it may be a wash.\n\nJust some things to consider.\n\nOne more thing, if you have a bank you do business with regularly, I would use that one to refinance.  You can also check www.bankrate.com.  That website can give you information about what banks are reputable and operate in your area.
101150
You should go to a mortgage broker. They help you find the best mortgage lender for your situation. \n\nThey don't cost any extra as they just get a cut of the money the mortgage lender makes. At least that is the idea, you still have to be a wise shopper.
298229
Frank!  Go away!\n\nI agree with the other people's advice...if all you owe is $2000 then it's worth trying to work it out with the credit card company.  Even if it involves making minimum payments.  That would work out to around $60-80 a month.  \n\nBy doing that, you avoid additional fees and penalties, until you can get your feet under you financially.  \n\nThe worst thing?  First they will place a report on your credit, making it hard for you go get loans in the future.  \n\nFor $2000 they may sue you.  If you have an income, or property such as a home or car, they may decide it's worth the effort.  If they do, tack on court costs and lawyer fees to what you owe.\n\nOnce they get a judgement, they can either garnish your wages, attach a lien to your bank accounts, take your car or put a judgement lien on your home (then you can't sell it).  \n\nThey don't go after your furniture or other posessions as nitwit says above.\n\nSo, my opinion, call the CC company and work it out.  If they don't budge, send them a letter to cease and desist so they stop calling you.
484349
If your husband has a steady job and your previous credit is fairly good, then you might want to try one of the credit companies like Capitol One for instance or HBC.  The interest rates are huge but they can usually find a way to put all the different debts together and spread it out over 25 more years to keep the payments low.  This was an option I took a a number of years ago during a renovation that went bad. Hopefully you can sell the house when completed if the amount you sell the house for is more than the debt and start fresh, getting rid of the high interest debt. It sucks to sell what you have worked so hard for but it is just a house.  The credit companies will sometimes let you pay the total debt without penalty if you sell the home and then you haven't paid much high interest anyways.  I understand the devastation and hopelessness of being in what seems to feel like an out of control situation.  You have to believe that life can get better just as quick as it went wrong.  If your only option is bankruptcy, so be it,  do what you have to do to make a stable home for your kids.  Just take control of the situation, get a few opinions and start sleeping again.  Banks run like sissies when you need help yet they are the first in line to bankrupt you in the first place.  There are reputable companies around to help people like yourselves in this tight spot.
767265
sounds like you should pay off your old credit card first!!
169209
try the BBB \n\nhere is the bbb report for the company you are looking at.\n\nhttp://www.chicago.bbb.org/commonreport.html?bid=51002056\n\nI looked at the site and thought about how they would make money. They must get you with the fees for borrowing the money. Its worth it if you have no money and no other way to do it I suppose. But if you dig down deep and look at the numbers, my guess is it would make just as much sense as maxing out a credit card or getting a home-equity loan on your first house. Unless....\n\nMaybe they offer advice for the novice fixxer upper which may be worth it if they really do provide you with help. You would have to check I have no idea if they do or not.
960989
Sure.  Depending on what you need it for and your actual credit you will probably pay a high interest rate though.  Check the links here for some help.
871492
Double up on both.  If you can find a way to consolidate the two, cancel one, and then make one payment, you'll reduce the debt even more.  If you own a house, consider a Home Equity Loan (not a Line of Credit - the actual fixed-rate loan.)  The interest is much lower and you'll have tax-deductions.\n\nWhatever you do - cut up BOTH credit cards immediately and stop using them.
1025515
Yes.  However, if you have more than 4 credit cards and you pay them off, it does not necessarily help you when you purchase a home.  People do not realize that the more credit cards they have will cause a lender to not provide the best possible interest rate when buying a home, even if the balance owed is zero.  Some lenders will still consider the card holder a "credit risk" because of the number of cards they have regarless of balanced owed on the cards.  By paying off the credit cards, it will increase your credit score.  The best thing to do is cancel the cards you don't need.  Keep at least one major card, such as Visa, Mastercard, Discover, etc.,  wait 1 year and then try buying a house.  Always check your credit score to determine if your credit score allows you to negoitate for a good interest rate.  Do not go for "interest only" loans because the lender will require you to pay the interest first and no money will be credited to the prinicipal until the interest is paid in full.  Seek out an honest financial advisor, if you can find one, to give you the upfront details before you buy your home.
908651
It sounds fishy.   If you have that much money to give to someone else,  just pay off your own debt and that will help you too.  I know when I opened to much credit too fast, it hurt my credit score a bit and were only talking about 1500 dollars.  This company is talking about credit lines of 10-15 thousand each.  That could show you as out of control and a credit risk and lower your score.
1141786
Yes, I believe so.  The best course of action is a debt management company instead of borrowing more.  Try In Charge Debt Solutions.  A friend uses them and seems very satisfied.  They call all your creditors, get your interest rate removed or reduced and consolidate your monthly bills for a lower payment than your total is now.  They charge a small monthly fee but the pay back amount is still less than if you did nothing.  Just do an internet search on In Charge Debt Solutions and they come up along with several others.
4235
I think that you could just notify the bank/cc company of your interest, after all, I hear that they have even sent credit card offers to dogs, babies and dead people.  \n     Getting the credit isn't the problem, paying it off and not becoming a slave to it is!  Been there, done that, and never again! Been three years debt FREE!!!\n CASH is King, debt is dumb and the paid off home mortage is the NEW status symbol of wealth!!!!
470511
and two became one, yep.  you inherit the wealth, unfortunately, except you will still have 2 individual credit scores.  i was in the same situation, it was hard getting our house cause he made more money but had the credit problem, but as long as everything is paid to date, and the credit bureaus have been updated most places will look at that and take it into to consideration, you should be ok.  if he still has bad credit and outstanding bills, try to pay them off and close them yourself, it looks alot better than if they close them for you.  and even if you couldnt pay them off, sometimes calling them, they will make a settlement amount and you could be better off then if they take it to a collection agency, ive been through this, im soooooo glad thats over.  i bet you werent to happy with him about this, just try not to yell at him about it, he probably already feels bad enough, just work with him, and you be in charge of the finances.  good luck.