I have credit card debts as well as friendly loans from friends which i took for a business venture since business failed i do not know how to repay will it help by refinancing may house. Pls help.
2007-01-07 00:32:41 · 7 answers · asked by Anan M 1 in Business & Finance ➔ Credit
If you have enough equity in your house that will give you enough cash out where you can pay off your debts it may be worth it. Pay attention to what your new interest rate would be and compare the amount of total debt you pay out now to what your new amount would be. Also beware of mortgage brokers, they can help you but be aware of their fees.
2007-01-07 00:52:07 · answer #1 · answered by naynayb5287 1 · 0⤊ 0⤋
I give you credit for wanting to do the right thing for your friends. Friendships are important and you're obviously trustworthy if they loaned you the money in the first place.
You're in debt and refinancing will not make it go away. It will not put you into more debt either. Refinancing doesn't eliminate or increase debt it just restructures what and how much you must pay and may help you pay it off sooner.
If you lower your overall monthly payment, and then take the amount your paying now and put it back into your mortgage you may end up saving yourself a lot of money and dramatically reducing your overall debt over the next five years. Or you may invest the difference at a rate of return higher than what your interest rate is.
Your main goal would be to pay off your bills, pay your friends and still save money in the long term. This might not always be possible but it usually is.
There is no cookie cutter, one size fits all plan. You have to look at your options and do what is best for you in the long term.
If you need help feel free to contact me and we'll talk, my office phone number is 818-361-8585 (Just ask for Kevin)
2007-01-08 09:09:17 · answer #2 · answered by kevingeorgecampbell 2 · 0⤊ 0⤋
I guess your friends can aunderstand your situation and allow you to first deal with the credit card debts, right? But this is not the problem. Your posessions' future safety must be taken care of....now with the house...I don't know....
But have you tried some...credit repair or dome debt negotiation?
http://www.dari-bazaar.com/wp/125/debt-negotiation-advice/
as you can observe, I'm taking about finding a professional negotiator/arbitrator who would pay for your loans under some conditions.
I'd even try some debt negotiaton company or advisor.
Good luck!
2007-01-09 02:09:39 · answer #3 · answered by allanah 3 · 0⤊ 0⤋
This is a great answer as long as you can refrain from piling up new debts to replace the ones you pay off. Here is a link to a fantastic refinance site. You can get a free quote so that you are prepared and have a better understanding of what to do. Good Luck
2007-01-07 06:55:44 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Why put yourself into MORE debt if already heavily in debt? Go to Consumer Credit Counseling Services (CCCS) and they will help you compile all your debt into one bill while having your APY reduced significantly. They DO charge a monthly fee for this however.
And please try to control spending.
2007-01-07 01:30:09 · answer #5 · answered by ♨ Wisper ► 5 · 0⤊ 0⤋
Yes.
Sell everything you have (Including your bed)
It's important to keep your friends. You may need them in the future again.
2007-01-07 06:41:37 · answer #6 · answered by Anonymous · 0⤊ 1⤋
daveramsey.com
2007-01-07 00:48:33 · answer #7 · answered by jbme 5 · 0⤊ 0⤋