Consolidating credit card debt with mortgage | TigerDroppings.com

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ACT
USA Fan
Member since Sep 2010
1079 posts

Consolidating credit card debt with mortgage


At lower interest rate than current mortgage. Pros and cons please?






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fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
18223 posts

re: Consolidating credit card debt with mortgage


Can save you money, but you have to cut up those CC's.





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kevv824
LSU Fan
Member since Sep 2006
2214 posts

re: Consolidating credit card debt with mortgage


Get a heloc, don't put it with the first mortgage.





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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


It's my gf and I already got her to cut them up

She got a letter to consolidate at 2.774 when her current is 3.5 on the mortgage. Only downfall I could cone up with was maybe selling on the back end. I figured she may end up owing that difference if she sells.






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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


quote:

Get a heloc


Go on..






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fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
18223 posts

re: Consolidating credit card debt with mortgage


quote:

Go on..


Same as what you are being offer.






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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


Why is that better





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fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
18223 posts

re: Consolidating credit card debt with mortgage


Google HELOC loans.





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mglsu21
LSU Fan
Prairieville
Member since Jun 2012
562 posts
 Online 

re: Consolidating credit card debt with mortgage


quote:

Get a heloc, don't put it with the first mortgage.


I am not trying to make a generalization about people or the OP, but usually when consolidating credit card debt a HELOC is a bad idea. That would give the person the ability to run up more revolving debt with an open ended line. It would be the same as having the credit cards, just a smaller interest rate.






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tigerrocket
LSU Fan
Member since Aug 2008
90 posts

re: Consolidating credit card debt with mortgage


Although it's a good rate, I am not a big fan of financing "wants" that were bought with a credit card for 15 or 30 years. I would definitely plan on paying extra on the mortgage.





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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


She's not very sound financially and in trying to educate her. It's 10 grand in CC debt and she's having a hard time justifying the interest with every little piece of junk mail that comes in





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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1924 posts

re: Consolidating credit card debt with mortgage


a heloc is a home equity line of credit, get 10k line of credit pay off the credit card debt..most helocs have a 1yr intro rate around 1% then it goes to 4-6%. just make sure she caps the heloc at the amount of credit card debt. also helocs have no closing cost ..





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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32067 posts

re: Consolidating credit card debt with mortgage


Dump her. Money is the number one cause of divorce





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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


She has been made well aware of my disdain for debt. She has car, house, 10 in CC, 80 from school.

I'll have to look into the heloc and see if that's a suitable option for her






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29838 posts

re: Consolidating credit card debt with mortgage


You will definitely pay a lower rate, the main potential drawback is the (slightly) increased possibility of losing the house if you can't make the payments even though they will be lower than the current situation. OTOH, if you can make the mortgage but not the credit card bills you still get to keep the house.





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tiger94gop
LSU Fan
GEISMAR
Member since Nov 2004
1684 posts

re: Consolidating credit card debt with mortgage


You are trading short term debt for long.

However, if you put it on a mortgage, you should get a fixed low rate. The interest is tax deductible, and you can always pay more to reduce the term.

If you just pay the minimum payment on your cc, your CC debt will far exceed what is paid in mortgage debt. If you pay extra on the mortgage at a fixed rate, it will reduce quickly.

A mortgage is not an easy thing and you can still use a CC if you need it, that is why it is open-ended or revolving debt. Unless you get a HELOC, your can't borrow anymore.

That is basically all I can think of.






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SippyCup
New Orleans Saints Fan
Member since Sep 2008
1269 posts

re: Consolidating credit card debt with mortgage


quote:

I am not a big fan of financing "wants" that were bought with a credit card for 15 or 30 years


Agree, unless she is planning on selling the home in the next few years.






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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


Thanks for the info guys..I'll talk it over with her and look into heloc and other options





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PlazaDeBurbanko
LSU Fan
Houston
Member since Jan 2011
633 posts

re: Consolidating credit card debt with mortgage


Get 0% cc and transfer all bal's on that. Keep playing that game till all payed off. frick a 2nd lien on your home for cc debt





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ACT
USA Fan
Member since Sep 2010
1079 posts

re: Consolidating credit card debt with mortgage


How feasible is that game really





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