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Originally Posted by MelAnnDoll Thanks for everyone's advice!
No, I don't want to risk losing our house! I also don't want to take out another loan because that just seems like a vicious cycle!
Our interest rates are so high and with the new min payment raises we are just barely keeping our heads above water.
I will check these places out, thanks! |
You can consolidate your CC's and call them and ask for a lower rate so you can get ahead in paying it off. Just call the CC company and ask for the latest promotional rate. I just tell them the truth - I'm a good customer, pay on time, and I get 2 credit card offers daily for 0% interest rates and I would like to stick with their card but only if they lower my rate. Be careful about balance transfers because they tend to charge a fee for those. Calculate the fee vs. the interest on the card you will pay off.
Re-financing or taking out a 2nd mortgage works if you finance less than your home is worth AND you
cut up the cards. Then pay as much as you can every month to the mortgage. It can get ugly if you use it to pay off a card and then run up the balance on the card again. Then you have an extra mortgage payment AND a CC payment. At least mortgage interest is tax deductible - CC interest is NOT. You must have enough equity in your house to do this, which means you borrow against your down payment and any appreciation your house has had. You would only lose your house if you could not afford the mortgage payments. Most 2nd mortgages are 15 years though, so you need to pay extra or you are just stretching out the debt. I would not suggest a HELOC - Home Equity Line of Credit. If you go this route just get a fixed rate 2nd mortgage or completely re-finance. Just do your homework first!