Consolidating credit card debt into mortgage
No matter which option you choose to pay off your debt, you don’t want to get in the red again.
Dlugozima suggests asking yourself if the root cause that caused you to run up credit card balances in the first place has been addressed.“We want people with credit card debt to examine their financial behaviors and make meaningful changes for the long term,” Opperman says.
To calculate your savings from consolidating your card debt by refinancing, use Bankrate’s personal debt consolidation calculator.By refinancing your mortgage and taking extra money to cover your credit card debt, “you’re lumping in your unsecured debt with your assets,” says Thomas Nitzsche, spokesman for the nonprofit Money Management International. If you can’t pay your card balance, a lender generally cannot seize your assets.A mortgage is a secured loan and if you can’t pay, the lender has the right to foreclose on your home.Then a solicitation from a company I’ve never heard of offered me 0,000 more than my home is worth. In researching this story, I came to the conclusion that a cash-out refi wouldn’t be smart for me.Yes, it might make financial sense, but if I had card debt to roll into the mortgage, I’d be worried that one day I couldn’t pay my monthly bill, and I’d lose my charming home.