Re-financing gets you a rate a lot lower than the credit card companies are charging. But make sure you maintain the equity in your home though. If your home would sell on the market now for much more than you owe then you're in good shape. Watch out for credit counselors. The so called "non-profit" are frequently not & can get away with large "hidden" fees. So investigate. But if you can re-fi without selling out the profit for your house, do. It will bring peace of mind.
If at all possible, please do not consolidate your credit card debt with your mortgage. The last thing you need is to be paying your credit card debt for the 30 years of a typical mortgage!!!! In that time you may have amassed even more credit card debt. There has been some great advice posted for you. I wish you all the best. Credit debt is scary. I've been there too. I am now debt free and it took 12 years but it sure feels great.
Have you tried credit counseling? Consolidated Credit Counselors are very good. That way you would not have to refinance your home, and whatever you do if you decide that you do want to refinance, do not let the bank or what ever place you go through talk you into an open line of credit on your equity, its very easy to pay off your credit cards but its also a good way to dig yourself into an even deeper hole than your already in, and whatever you do, cut up your credit card and tear up any credit card offers you get in the mail. Take a hard look at your finances and see where you can cut back, put every cent you can toward your credit card debt. Make a budget and stick to it as much as you can. There are lots of sites that you can download budget sheets. "The Budget Stretcher" (http://homemoneyhelp.com) is one. I'm not sure I spelled that right. Keep coming here and look for tips for saving money. I've been where you are and did what I have advised you not to do and ended up having to declare bankruptcy, I don't want that for you if it can be helped, that will stay on my credit for 10yrs. I'm starting over, and now I'm doing all those good things, budgeting, looking for tips, and doing a lot of making my own mixes, etc... Good Luck.
lesson be learned!!!!
my grandmother bought her home like 40 years ago for $20,000.00, i have no idea what its worth today but over the years she refinanced upon refinanced her house she is now indebt for $100,000.00. the man that was living with her left and she is now on her own and she is 80 yrs old working at a car wash. watch where you put your dollars!!!!!
First pray and ask God to help you. Then ask your bank or credit counsellor for that good advice given by "beanygurl" before. I know what it is like to not be able to sleep because of debt. God can help with both. I wish you the very best!
you may qualify for an unsecured line of credit or consolidation loan at lower interest than what the credit cards are charging. Talk to your bank or credit counsellor to discuss your options. Once you have arranged this, cut up your credit cards and don't apply for any new ones.
yes, we have refinanced three times, and each time it gets worse. it feels good to have all the bills paid off at first, but then you find yourself buying things again and before you know it you are right back where you started. if you do refinance be careful of what you get locked into. we had housefhold finance refinance us then when we refinanced again we ended paying them an extra 5,000 so make sure you fully understand, go with an institution that you can trust, like a regular bank. and do THROW AWAY ALL CREDIT CARD AND DO NOT LET YOURSELF
REAPPLY FOR THEM. it is so easy to just go ahead and get them, but then when you are in a pince you use them and then you are in a hole again.
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