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?
2007-11-20 09:30:06 · 8 answers · asked by ME 3 in Business & Finance ➔ Credit
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 09:50:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The difference between $1500 and $3000 is paying $50/month for 33 months or 74, so it's more than double. I would try to understand why your dad thinks the way that he does. Is he good with money, i.e. compare what he earns to what he has saved? If he only makes around $40k, but has a half-million in retirement and paid for house, then he's pretty good, and is a person to listen to. If he makes $100k and is up to his eyeballs in debt, then perhaps he's trying to save you from his mistakes. Maybe he knows that 5 years from now, you're going to be talking to your friends and some are going to be talking about buying a house and others about trying to pay off their student loans, credit card, car payment, etc. I know, because I'm 26 and in the second group. Borrowing now to have fun and take it easy is likely to teach you that it's ok to borrow to have fun and take it easy. That may be what the banks (lenders) teach, but at some point when you're paying it back, you'll be thinking that it's not fun and easy. On the other hand, compared to your peers, $3,000 is nothing. If you are struggling with classes and grades because of working during the semester, then take the loan. If your can get a 3.1 gpa instead of a 2.9, then the $1,500 was a great investment, because I would suspect that your first job with a 3.1 would pay more than $1,500 a year more than the job you can get with a 2.9. If you're going to be able to do an internship, or a research project because you're not working as much, then take the loan. 6.8% is a high rate to pay to have fun, but if it's going to make you more employable, then take it. I'm sorry there isn't a clear-cut answer, but hopefully you can better decide for yourself.
2016-05-24 08:56:44 · answer #2 · answered by ? 3 · 0⤊ 0⤋
1. An equity loan is a good way to consolidate as the interest rate will be cheaper and there are tax benefits, however, this is only good if you can control your spending and not rack your credit cards back up again.
2. You can try to get side jobs or have garage sales, any extra money earned put towards the credit card with the highest interest until it is paid and then move to the next card. etc...
3. Visit www.moneyclubs.com and join the 21-Day Debt Makeover. It is free to join and has a lot of great advise.
Best Wishes,
Colleen
2007-11-20 11:18:23 · answer #3 · answered by Colleen M 2 · 0⤊ 0⤋
The only way you can keep out of high interest credit card debt is to shred the cards and live on cash. The other ways are taking money that you need to buy you time. The only way to get out of debt is to change your lifestyle.
Check out Dave Ramsey's site.
2007-11-20 09:38:19 · answer #4 · answered by Steveo 5 · 0⤊ 0⤋
Yes, you're just going to get yourself in deeper debt. Unless you have like 50% equity in your home, you're nuts to do this. You can lose your house.
What you need to do, is stop using credit cards, YESTERDAY. Period. No matter what. Take on a second job. Sell everything you outright own. And stop spending money you don't have.
And start listening to Dave Ramsey on the radio - www.daveramsey.com
2007-11-20 09:35:44 · answer #5 · answered by Anonymous 7 · 0⤊ 0⤋
Refinancing is not a bad thing, so I can't say I agree on the above poster on that, however, it's not a good idea to always be spending money before you have saved it up. One thing she does have right is to sell some of the things you have payments on and get cheaper. Maybe get a smaller car, a smaller house, and be patient and build that money up.... and stop buying unneeded stuff!!
Need more help, here's a trustworthy site:
http://www.nfcc.org/
2007-11-20 09:47:56 · answer #6 · answered by HoofHearted 3 · 1⤊ 0⤋
If you have decent equity in your home, arrange an Equity Loan. Your bank can do it.
The interest will be far less than damned credit cards.
Pay them off, and tear up the cards.
Annnndddd, interest on an equity loan may be deductible from your gross income and reduce your income tax.
2007-11-20 09:40:26 · answer #7 · answered by ed 7 · 1⤊ 0⤋
unless u start to live on todays paycheck not tomorrows , refinancing and debt CON-solidation will only dig ur hole deeper.
visit daveramsey.com to learn ur hard lessons from others mistakes. it is cheaper.
2007-11-20 09:57:36 · answer #8 · answered by Anonymous · 0⤊ 0⤋