Refinancing mortgage to ease debt
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Refinancing mortgage to ease debt
| Tue, 12-30-2008 - 10:16pm |
hi there
I've made some horrible financial mistakes in my past and as a result have found myself in a huge amount of debt (30k).
Ive budgeted down to the bare necessities but am finding it impossible to make the minimum monthly payments. Because I was late on a few payments in the past, my interest rate is sky high.
Im wondering if anyone has experience with refinancing a mortgage? I'd basically like to roll my debt into my mortgage to take advantage of the lower interest rate.
Is this a good option?
I can't get a part-time job because of the unpredictable hours of my full-time job.
I just feel very lost these days and can't really concentrate on anything else.
I have to resolve this as Im forgetting what it's like to be happy.

Everything that I've ever heard or read has said that rolling unsecured (credit card) debt into secured debt (your home) is the absolute worst move you could make.
I'd consider consulting a bankruptcy lawyer....or CCCS (the REAL CCCS only) and see if they can't get your rates lowered.
Jennifer
HOLIDAY CHALLENGE
Jennifer
Can you explain why?
I am sorry that you are having problems. By the way, welcome to the board. I know 30,000 is a lot of debt believe me I know been there I started at 30,000 in debt. In the last year and a few months, I have paid it down to 17,999 which makes me feel better.
I know that you never ask me the question about refinancing the house and sticking the credit card debt into it but I will tell you why it is a terrible thing to do.
One if you have been late on any of your payments the changes are you getting a really decent interest rate on a refi is not great. Banks will not even talk to you unless your Fico score is at least 680 to 700. Second thing is credit card debt is unsecure debt that means they can only come and get money from you if you don't pay them. Yes they can put a lien on your house if it gets to the point where they sue you but they can not
I've done it three times.
Norma
"Patience is the best remedy for every trouble"- Plautus
It all depends.