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TeamCoachellaHellYeah
09-01-2008, 03:45 AM
Has anyone done this? Is it a smart idea? I am in the process of doing it to consolidate our CC debt into one payment. I need details people!

fiyahhh!
09-01-2008, 05:42 AM
My girlfriend had a ton of credit debt with high interest rates on many cards, so she dipped into her 401k to pay them off. I know this move is unpopular with money gurus who are adamant about not touching the 401k, but the amount of interest to pay back the 401k is way lower than the interest she was paying to the credit companies every month. It's a risky move because if she gets fired or quits she has to pay back the lump sum of the loan upon leaving the company. (knocks on wood)
I had looked into credit consolidation myself, but decided against it. The one thing I kept running into was that once your cards are consolidated, you can't use them. I've heard before that it's better to leave your accounts open once the balance is down rather than close the accounts. Leaving the accounts open will give you longer credit history and thus, boost your credit rating. If you can get a loan with a low interst rate, do that and pay the cards off. Cut the cards up after, but leave the accounts open. This might not be good advice, it's just my experience.

C DUB YA
09-01-2008, 06:04 AM
Or just have one card, and use it on the regular. People get into trouble when the multiple card thing comes into play. I haven't had any debt for about 12 years now. The only thing I pay on is my mortage.

canexplain
09-01-2008, 06:13 AM
i owed a lot on credit cards and refinanced my house (actually two times) and it saved me tons of money ... one thing you have to look out for is starting to use them again for "emergencies" like a concert dah .... i also got dinged on my credit rating for having my credit cards open for so many years even though i always paid them on time ... not sure why that was the case .... fucking credit cards ... when i was young it was so hard to get one and now they beg you to have one .... i think the old days might have been smarter in this instance ..... x****

faxman75
09-01-2008, 07:22 AM
I will be declaring bankruptcy this year. I recommend that. Then fuck all the cards, live off of cash. Me and my ex refinanced the house twice in order to pay off all of our credit cards. I had the trifecta after we broke up, this year I had the house foreclosed on, did a voluntary repo no my SUV and in the next month or so I will do the bankruptcy.

Live is good.

TeamCoachellaHellYeah
09-01-2008, 07:35 AM
Ok so here is my story. After a triple hit of our Wedding and APW AND my Wife going part time, I need less bills. We racked up 13k on our credit cards together, now I know it is not much compared to some (especially for someone who never had this much debt), but it freaks me out. We are supposed to get a loan for 60 months @ 6.99% for the 13k. Is this better then just paying on the cards? We do plan on keeping the cards open and plan on using just one card, if we do we the loan. Should I do this? Yay or Nay?


EDIT: Damnit I broke my lucky 7777 post...

faxman75
09-01-2008, 07:57 AM
TCHY, yes, the loan at a fixed rate is definitely better than making small payments for 20 years or whatever on your cards. You get the loan, pay off the cards, CUT UP THE CARDS, then you have one nice low payment a month. I'm telling you don't keep any of the cards open. Close them all and cut them up or you will find reasons to use them over and over again. If you absolutely must keep one card, keep the one with the lowest limit. I have known lots and lots of people who have the logic of keeping them open to try and improve credit. It's not worth it, it doesn't happen. You will owe these banks for the rest of your life because in life stuff happens and people want things. Don't do it. If you are going to do this loan which is a good idea, don't keep your cards open. Fix it move forward and be more responsible. I have been through this at least 4 times now *lol* If I would have closed and cut up the card after the first time, I wouldn't have continued to be in this situation.

Good luck.

Pixiessp
09-01-2008, 08:25 AM
i paid off my credit cards with a loan from my 401k. Actually, I've done it twice now. Had absolutely no problems as it came out of my weekly checks and I got to decide how long I was going to take to pay off loan.

Pixiessp
09-01-2008, 08:26 AM
and.....any interest I paid went right back into my 401k account.

JustSteve
09-01-2008, 09:02 AM
i guess i have been lucky because i just keep receiving those 0% offfers. i have had about $6,000 in debt for the last 8 years or so. it fluctautes a little, but i tend to pay off my monthly bill regularly. i just don't have enough to actually pay down the original 6 grand. i haven't paid one penny in interest this whole time, though, since i just transfer it to a new 0% offer once the original one is about to expire. just got one on the mail with 0% for 15 months. once my gf closes another house, though, we will probably just pay it off and be done with it. with 2 kids and zero debt it will be pretty amazing.

TeamCoachellaHellYeah
09-01-2008, 09:14 AM
i guess i have been lucky because i just keep receiving those 0% offfers. i have had about $6,000 in debt for the last 8 years or so. it fluctautes a little, but i tend to pay off my monthly bill regularly. i just don't have enough to actually pay down the original 6 grand. i haven't paid one penny in interest this whole time, though, since i just transfer it to a new 0% offer once the original one is about to expire. just got one on the mail with 0% for 15 months. once my gf closes another house, though, we will probably just pay it off and be done with it. with 2 kids and zero debt it will be pretty amazing.

I tried to play this game and it didn't work for me so much. Alot of the offers I got ended not being what they claimed and were 0% for a few months and then jumped to 13% to 20%.

captncrzy
09-01-2008, 09:57 AM
I feel the need to weigh in here, not because of previous trouble I've gotten myself into but because I spent 10 years as a financial counselor. I can't tell you how many times I've had to answer this same question.




Ok so here is my story. After a triple hit of our Wedding and APW AND my Wife going part time, I need less bills. We racked up 13k on our credit cards together, now I know it is not much compared to some (especially for someone who never had this much debt), but it freaks me out. We are supposed to get a loan for 60 months @ 6.99% for the 13k. Is this better then just paying on the cards? We do plan on keeping the cards open and plan on using just one card, if we do we the loan. Should I do this? Yay or Nay?



What kind of loan are you talking about-a secured loan or an unsecured loan..meaning, are you putting up collateral for this loan? If you're talking about a secured loan, don't do it. What you're doing is putting up your house/car/whatever as a guarantee to pay back credit card debt. If you default on a credit card payment, there's not much they can do other than ruin your credit and maybe sue you (depending on the balance) for the remainder. If you default on a car/house, they'll do the above, plus repossess the collateral. It's never smart to transfer unsecured debt into a secured loan.
If you're talking about an unsecured loan, it's not a bad idea...IF YOU LOSE YOUR CREDIT CARDS. Keep one if you must with like a $1,000 limit so you can use it to guarantee hotel rooms and rental cars and whatnot, but get rid of the rest. If you don't, you're obvious spending habits will direct you right back towards your credit cards. Within two years of people doing this kind of thing, they're usually stuck with the loan they took out, and the exact same amount of credit card debt they had before. Then they're screwed. Trust me on this one.


TCHY, yes, the loan at a fixed rate is definitely better than making small payments for 20 years or whatever on your cards. You get the loan, pay off the cards, CUT UP THE CARDS, then you have one nice low payment a month. I'm telling you don't keep any of the cards open. Close them all and cut them up or you will find reasons to use them over and over again. If you absolutely must keep one card, keep the one with the lowest limit. I have known lots and lots of people who have the logic of keeping them open to try and improve credit. It's not worth it, it doesn't happen. You will owe these banks for the rest of your life because in life stuff happens and people want things. Don't do it. If you are going to do this loan which is a good idea, don't keep your cards open. Fix it move forward and be more responsible. I have been through this at least 4 times now *lol* If I would have closed and cut up the card after the first time, I wouldn't have continued to be in this situation.

Good luck.

Fax, you know I love you more than my luggage, but don't give financial advice when you're filing bk.

Also, you're wrong. You can cut up the cards, but don't close the line of credit with the company. Just keep it open. It creates a credit history. They create your credit rating based on numerous things, including how long you've had credit. Say you opened a credit card 8 years ago, and another one a year ago. If you close the line of credit you've had open 8 years ago, the only open credit they see is from one year ago-therefore lowering your credit score because they only see a year of open history.


i paid off my credit cards with a loan from my 401k. Actually, I've done it twice now. Had absolutely no problems as it came out of my weekly checks and I got to decide how long I was going to take to pay off loan.

Again, not a smart move. Aren't you in your 40's? Most people that do this pay back the money they owe, but don't add to it because they're paying back what they owe. Say you're putting 100 a month into a 401k and you decide to take a loan out against it and the payment is 100 a month. The only way you continue to contribute to your 401k rather than pay back the loan is if you increase your contributions to 200 a month. You're taking years out of your retirement account-not a good idea for someone who's supposed to retire in 20 years.

TeamCoachellaHellYeah
09-01-2008, 10:02 AM
we are applying for a usecured loan...not a secured loan...

captncrzy
09-01-2008, 10:03 AM
Then go for it, but make sure you cut up those other cards. You'll be fine.

TeamCoachellaHellYeah
09-01-2008, 10:03 AM
Then go for it, but make sure you cut up those other cards. You'll be fine.

What about keeping one card, just in case?

Pixiessp
09-01-2008, 10:05 AM
thanks for the info Capt. you have a very valid point.

faxman75
09-01-2008, 10:17 AM
Fax, you know I love you more than my luggage, but don't give financial advice when you're filing bk.

LOL ok :)



Also, you're wrong. You can cut up the cards, but don't close the line of credit with the company. Just keep it open. It creates a credit history. They create your credit rating based on numerous things, including how long you've had credit. Say you opened a credit card 8 years ago, and another one a year ago. If you close the line of credit you've had open 8 years ago, the only open credit they see is from one year ago-therefore lowering your credit score because they only see a year of open history.

I understand all that but I also know people. They leave them open and cut up the cards and then something comes up they really want to do or think they really need and they simply call and order the cards again. I'm just trying to save him the strife of having twice as much debt on cards he could have closed but yes, if we are talking about someone who is "reformed" and no longer able to make bad decisions regarding their credit, yet it will make their credit score look more pretty by leaving them open. I just know that I and others have done this and ultimately charged them all up again. :)

gaypalmsprings
09-01-2008, 10:26 AM
you can cut up the cards but don't close the accounts - it will lower your FICA score

TheGunner'sDream
09-01-2008, 11:23 AM
Declare bankruptcy. An opportunity to start off fresh.

ThomThom
09-01-2008, 11:48 AM
I'm in a bit of a fucked up situation myself. My credit has shot to shit because of not paying my credit cards for about 6 months, at the time I could not afford it with a new townhome and some really unexpected emergencies, now that I am out of that bind and ready to pay my debts, they have all soared to ridiculous amounts. I can't get a loan from anybody to pay off the debt because my credit history has been fucked and I can't get approved. I have only been able to reach settlements with the small balances, but the big guys will not budge.

Also, Marco... I think getting an unsecured loan is the best way to get out of your debt, you just have to make sure that you cut those fucking cards up, keep one stashed away for hotel rooms/car rentals or emergencies, otherwise DON'T USE THEM. I wish I could get an unsecured loan, if anybody can point me to the right direction in getting one I would greatly appreciate it.

captncrzy
09-01-2008, 11:58 AM
What about keeping one card, just in case?

Keep one card; make sure the limit is low-no more than you can afford..I'd say a thousand is sufficient-that much will cover you in emergencies. Cut the rest up and when they send you new ones, cut those up too.

captncrzy
09-01-2008, 12:00 PM
LOL ok :)



I understand all that but I also know people. They leave them open and cut up the cards and then something comes up they really want to do or think they really need and they simply call and order the cards again. I'm just trying to save him the strife of having twice as much debt on cards he could have closed but yes, if we are talking about someone who is "reformed" and no longer able to make bad decisions regarding their credit, yet it will make their credit score look more pretty by leaving them open. I just know that I and others have done this and ultimately charged them all up again. :)

Yeah, but out of sight, out of mind. It's easy to forget what cards you have open when they're not in your wallet. I have like a Sears account that I opened 10 years ago or something to get a percentage off of a purchase and never used again, but I keep it open because it's old.

captncrzy
09-01-2008, 12:02 PM
Declare bankruptcy. An opportunity to start off fresh.

Idiot. BK is for people that get into sincere trouble that can't do anything else to get themselves out of it. He doesn't need that on his credit report for the next ten years when he's young and just starting out-it's no way to start a marriage. And frankly, $13k isn't that much these days. If it was $50k, and they were both working two jobs and still couldn't get it taken care of, that would be a different story.

captncrzy
09-01-2008, 12:07 PM
I'm in a bit of a fucked up situation myself. My credit has shot to shit because of not paying my credit cards for about 6 months, at the time I could not afford it with a new townhome and some really unexpected emergencies, now that I am out of that bind and ready to pay my debts, they have all soared to ridiculous amounts. I can't get a loan from anybody to pay off the debt because my credit history has been fucked and I can't get approved. I have only been able to reach settlements with the small balances, but the big guys will not budge.

Also, Marco... I think getting an unsecured loan is the best way to get out of your debt, you just have to make sure that you cut those fucking cards up, keep one stashed away for hotel rooms/car rentals or emergencies, otherwise DON'T USE THEM. I wish I could get an unsecured loan, if anybody can point me to the right direction in getting one I would greatly appreciate it.

S-you never want to do a settlement unless its with the IRS... the amount that doesn't get paid gets written off the books as an uncollectable debt--aka a charge-off. Half the time that amount gets sent to an agency and they start to collect on it again. It's not worth it. Honestly, your best bet is to A) contact each credit card company, explain that you're ready to start making payments and make an arrangement to get out of arrears or B) contact a (reputable) non-profit company like the one I used to work for and let them make the arrangements for you. Or at least go through a session and get some advice. www.moneymanagement.org.

ThomThom
09-01-2008, 12:20 PM
S-you never want to do a settlement unless its with the IRS... the amount that doesn't get paid gets written off the books as an uncollectable debt--aka a charge-off. Half the time that amount gets sent to an agency and they start to collect on it again. It's not worth it. Honestly, your best bet is to A) contact each credit card company, explain that you're ready to start making payments and make an arrangement to get out of arrears or B) contact a (reputable) non-profit company like the one I used to work for and let them make the arrangements for you. Or at least go through a session and get some advice. www.moneymanagement.org.

I have technically only settled with 3 small accounts, they sent me letters of agreement that upon making the settlement payment the actual debt is considered "settled" and thus closed and reported as a "R5" to the credit bureau's and again considered "settled". If for whatever reason they try to fuck me later by collecting the remainder of the non-settled amount I have the letter of agreement to shove up their asses. Also, Jen how would I be able to know whether one of those non-profit companies were reputable or not? I remember my sister was scammed for about $6,000 by one of those debt management companies a few years ago.

TeamCoachellaHellYeah
09-01-2008, 12:23 PM
I really really hope we get approved for this loan.....less stress for me.

BROKENDOLL
09-01-2008, 12:55 PM
I tried to play this game and it didn't work for me so much. Alot of the offers I got ended not being what they claimed and were 0% for a few months and then jumped to 13% to 20%. Combine 6 credit cards and the phrase, "Life is short, live it to the fullest," and you have me prior to filing bankruptcy last year. "Living to the fullest" ended up being 4 of those cards at 32% interest, paying the phone company for a phone I was afraid to answer, and realizing that even if I hid the cards and never used them again, there was a balance that would never go down unless a miracle were to happen. I actually hoped someone would steal my identity! "Here, take it, jokes on you, asshole! This game sucks!"


Then go for it, but make sure you cut up those other cards. You'll be fine. If you still have the opportunity to consolidate your debt at a reasonable rate, by all means do it, but follow the Capts. orders...Put those friggin' cards away, cut 'em, whatever, but DO NOT USE THEM!


What about keeping one card, just in case? If that's the case, make it your debit card that you carry on you and the "just in case card" can be retrieved for a real emergency. Had I used my debit card back then, I probably wouldn't have had so many "emergencies!" (Buying both pairs of shoes because you can't decide on which pair is not considered an emergency!)


Declare bankruptcy. An opportunity to start off fresh. Yeah, it is a fresh start...BUT, you don't just lose the cards that are fucking things up for you. You forfeit every single one for the next 10 years, including any for emergencies. And, don't forget trying to purchase a vehicle, or a home, or getting any kind of a loan... If you can in any way avoid doing what I had to, by all means, look into it. My fresh start means hoping no crisis comes up and having to accept the fact that not only can I not buy both pairs of shoes, I may just have to wait to buy one pair.


I'm in a bit of a fucked up situation myself. My credit has shot to shit because of not paying my credit cards for about 6 months, at the time I could not afford it with a new townhome and some really unexpected emergencies, now that I am out of that bind and ready to pay my debts, they have all soared to ridiculous amounts. I can't get a loan from anybody to pay off the debt because my credit history has been fucked and I can't get approved. I have only been able to reach settlements with the small balances, but the big guys will not budge.

Also, Marco... I think getting an unsecured loan is the best way to get out of your debt, you just have to make sure that you cut those fucking cards up, keep one stashed away for hotel rooms/car rentals or emergencies, otherwise DON'T USE THEM. I wish I could get an unsecured loan, if anybody can point me to the right direction in getting one I would greatly appreciate it. ThomThom, go talk to someone, a consultation. That's the same boat I was sinking in, (Sorry) and in the meantime, those fucking card companies were exposing me to more and more of their sneaky small print bullshit. You have your townhome, but don't reach the point of risking that. An attorney can explain it and point out your options.When I faced the Bankruptcy Judge and courtroom, there were people who had 2 new cars, a house payment, etc, that didn't lose those things. They only lost their debt and the ability have any credit in the future. (10 years.) Everybody's situation is different. Bankruptcy seems an easy way out, but it too will cost you.


Idiot. BK is for people that get into sincere trouble that can't do anything else to get themselves out of it. He doesn't need that on his credit report for the next ten years when he's young and just starting out-it's no way to start a marriage. And frankly, $13k isn't that much these days. If it was $50k, and they were both working two jobs and still couldn't get it taken care of, that would be a different story. Yep, I had reached the point in realizing that either way, "The life that was to short that I was living to the fullest," had reached it's end. And after everything l learned through out this lesson, I wished I had known then that living within my means isn't as hard as it sounds. ( I also wish I had known about this board back then...it may have prevented many of those uneccessary, "Gee, I'm bored, I think I'll go check this place out "emergencies!"):rolleyes

JustSteve
09-01-2008, 01:04 PM
i think people who file bankruptcy should also have to forfeit a majority of the goods they purchased with those cards. you are basically a thief at that point. i actually think before you are allowed to file there should be some program where you sell back a lot of your items. that big screen tv you bought for a couple thousand? gone. the designer clothes? gone. all that money can be used to pay down the original debt before it is released.

the problem is that no one feels like they have to work for anything anymore, everyone is entitled to what the next guy has. wrong.

BROKENDOLL
09-01-2008, 01:24 PM
i guess i have been lucky because i just keep receiving those 0% offfers. i have had about $6,000 in debt for the last 8 years or so. it fluctautes a little, but i tend to pay off my monthly bill regularly. i just don't have enough to actually pay down the original 6 grand. i haven't paid one penny in interest this whole time, though, since i just transfer it to a new 0% offer once the original one is about to expire. just got one on the mail with 0% for 15 months. once my gf closes another house, though, we will probably just pay it off and be done with it. with 2 kids and zero debt it will be pretty amazing.


i think people who file bankruptcy should also have to forfeit a majority of the goods they purchased with those cards. you are basically a thief at that point. i actually think before you are allowed to file there should be some program where you sell back a lot of your items. that big screen tv you bought for a couple thousand? gone. the designer clothes? gone. all that money can be used to pay down the original debt before it is released.

the problem is that no one feels like they have to work for anything anymore, everyone is entitled to what the next guy has. wrong. Okay, not all of my debt was because of shoes or designer clothing, and no, there isn't a big screen in my livingroom. I guess I should have mentioned having no insurance and medical bills. Speaking of which...Due to health reasons, you don't work. I'm assuming you have insurance, right? Had you not been so lucky, and your girlfriend had to cover all your debts and medical bills, and you couldn't work, would you feel the same way? I think the term thieving is abit harsh considering I'll be paying for my stupidity for the next 10 years and still face a risk of medical crisis. Yeah, consider yourself lucky...REAL LUCKY.

TheGunner'sDream
09-01-2008, 01:28 PM
ummm :(

clarky123
09-01-2008, 01:42 PM
Sorry to interject. Team, if you miss a payment they will switch the 0% agreed at the time (and they would do it) to whatever the standard variable rate of interest is e.g. 13.9%, 17%, 18.5%, 23.6% or whatever your particlar card type decides at that point. You must have missed a payment. Am I mistaken?

TeamCoachellaHellYeah
09-01-2008, 02:02 PM
Sorry to interject. Team, if you miss a payment they will switch the 0% agreed at the time (and they would do it) to whatever the standard variable rate of interest is e.g. 13.9%, 17%, 18.5%, 23.6% or whatever your particlar card type decides at that point. You must have missed a payment. Am I mistaken?

I have never missed a payment on anything ever...alot of the 0% were merely promotions to get me to use the damn cards. After 6months to a year the rates jump.

faxman75
09-01-2008, 02:21 PM
i think people who file bankruptcy should also have to forfeit a majority of the goods they purchased with those cards. you are basically a thief at that point. i actually think before you are allowed to file there should be some program where you sell back a lot of your items. that big screen tv you bought for a couple thousand? gone. the designer clothes? gone. all that money can be used to pay down the original debt before it is released.

the problem is that no one feels like they have to work for anything anymore, everyone is entitled to what the next guy has. wrong.

I'm glad that's not the law. :)

TeamCoachellaHellYeah
09-01-2008, 02:23 PM
I'm glad that's not the law. :)

Word!

clarky123
09-01-2008, 02:24 PM
yeah. They dont offer the rate forever, virgin do 13 months, barclays were doing 9 months it does vary. They are all crooks though thats why the western world is in this condition.

TeamCoachellaHellYeah
09-01-2008, 02:27 PM
yeah. They dont offer the rate forever, virgin do 13 months, barclays were doing 9 months it does vary. They are all crooks though thats why the western world is in this condition.

It is genius way to make $$$ though...

clarky123
09-01-2008, 02:33 PM
It is genius way to make $$$ though...

Sell your first kid to the IRS...as a sweetener! Seriously though, $6 grand roll it onto your mortgage, cheapest loan you will ever have. Good luck.

BROKENDOLL
09-01-2008, 02:34 PM
Sorry to interject. Team, if you miss a payment they will switch the 0% agreed at the time (and they would do it) to whatever the standard variable rate of interest is e.g. 13.9%, 17%, 18.5%, 23.6% or whatever your particlar card type decides at that point. You must have missed a payment. Am I mistaken?


I have never missed a payment on anything ever...alot of the 0% were merely promotions to get me to use the damn cards. After 6months to a year the rates jump. Both of these situations are correct. (It's all about the fine print.) That's where the card companies make their money. At one time I was able to pay off each card each month, thinking, "How cool am I?" Unfortunately, the card companies don't think that way. They're hoping you rack up some debt. What amazed me and enlightened me about credit card companies was the way they made a living off of your debt. Say, for instance, you have a card with a balance $2000 @ say, 12%. You recieve your statement which is due on a certain date. Some people pay the bill right then and there. Others, less fortunate pay it with days to spare. I had a card rate go up to 32% because the due date was not only on a Sunday, but a holiday weekend as well. They most likely recieved it on the Saturday prior, but never processed it until the following Tuesday! Add the $39 late fee on top of that % increase...Now, the $200 I paid each month only takes approximately $140- off my balance...Then you have the companies that realize you're in a financial crisis. You have a $7500 balance at 32%, so they help by lowering your credit limit. Fine, except they lower it to say, $7450. Since that's below the balance you have already, you're now expected to add an over-limit fee of another $39! So... to JustSteve, who thinks of the unfortunate people who must file bankruptcy...It's not like we choose to screwup our futures in credit, or want to be thieves, as you call us... Sometimes we end up in that position because thieves helped us get there.

TeamCoachellaHellYeah
09-01-2008, 02:35 PM
Sell your first kid to the IRS...as a sweetener! Seriously though, $6 grand roll it onto your mortgage, cheapest loan you will ever have. Good luck.


wait...what is this about rolling cc debt into your mortgage?

BROKENDOLL
09-01-2008, 02:37 PM
Oh, my God! I better find another thread! This one is beginning to make me sweat and want Tequila!

TeamCoachellaHellYeah
09-01-2008, 02:39 PM
Oh, my God! I better find another thread! This one is beginning to make me sweat and want Tequila!

Por Que? This is one of the few serious threads on the board, that hasn't been invaded by pointless pics...

clarky123
09-01-2008, 02:43 PM
wait...what is this about rolling cc debt into your mortgage?

Sometimes its the safest way. The climate is very bad at the moment though and banks are, at present, not always keen to lend even to existing borrowers.
Compare what you pay now to what you would pay with the additional amount rolled into the mortgage. The only way you would know what that is, I suggest, would be by speaking to your mortgage lender. They may charge an upfront fee.

TeamCoachellaHellYeah
09-01-2008, 02:44 PM
Sometimes its the safest way. The climate is very bad at the moment though and banks are, at present, not always keen to lend even to existing borrowers.
Compare what you pay now to what you would pay with the additional amount rolled into the mortgage. The only way you would know what that is, I suggest, would be by speaking to your mortgage lender. They may charge an upfront fee.

how does this work? Anyone have additional thoughts on this?

faxman75
09-01-2008, 02:52 PM
I don't know about "rolling it into" but you can take out a 2nd. It all depends on what your house is worth these days compared to your current loan. So for instance say you owe 150,000 on you house and it's currently worth 140,000. That would be upside down and you wouldn't have this as an option. If it's worth 160,000 now, you don't have enough equity yet, so basically you have to have enough equity to pay all your cards plus more to cover fees and most banks won't lend up to 100% of the value.

JustSteve
09-01-2008, 04:47 PM
It's not like we choose to screwup our futures in credit, or want to be thieves, as you call us... Sometimes we end up in that position because thieves helped us get there.

i never said everyone was a thief, but there are people out there who get into serious debt due to their greed. i have known many people who were so utterly irresponsible that it amazed me. friends that were working 20 hours a week, yet always had money to go out to dinner and the bar every night, always had the newest technology, etc.

and you can't blame credit card companies for getting into trouble. all the terms are there, but a lot of people probably never read the fine print or ask the questions they need answered. money management begins at home when you are a kid and i was fortunate to have parents that taught me about all of this stuff early on. i knew how to balance a checkbook in grade school and have had a credit card since i was 17, all with no issues whatsoever because i have never lived beyond my means. i have also been putting money into a rainy day fund since i was in high school, so i have never had a problem when an emergency comes up. it all comes down to planning and thinking about the future instead of the moment. i guess i was lucky to get a head start.

ThomThom
09-01-2008, 04:51 PM
I'm with Steve to an extent on the whole BK bit, I have witnessed some slimey old friends of mine run up all their cards and get whatever the hell they could out of them and than say "I can't afford it, I'm filing". But there are those honest people who have way too much debt, whether it was to maintain their families, pay medical bills, or they lost their job, those people have every right to file ONCE.

JustSteve
09-01-2008, 04:55 PM
i have heard the courts are really starting to crack down on who they are allowing to file for bankruptcy, too, since it has become such an epidemic. guess it's not as easy anymore.

TeamCoachellaHellYeah
09-01-2008, 05:14 PM
there are new rules to declaring Bankruptcy for the very reasons Juststeve is talking about. From what I know, it is loads harder to declare now then before.

leo01g
09-01-2008, 05:29 PM
capt. I have a question. I owe like 1,300 dollars on one card and another 700 on another. I make payments but i still use the cards thats why I still owe so much. So will my credit get screwed if I continue this? For only having credit for 2 years i think its still pretty good.

faxman75
09-01-2008, 05:33 PM
there are new rules to declaring Bankruptcy for the very reasons Juststeve is talking about. From what I know, it is loads harder to declare now then before.

Kinda but not really. The credt card companies just have a right to challenge your filing and force you to work out a payment program if they can prove you charged them all up and then declared BK. If you charge them all up and wait several months and then declare you will most likely be fine.

captncrzy
09-01-2008, 08:25 PM
I have technically only settled with 3 small accounts, they sent me letters of agreement that upon making the settlement payment the actual debt is considered "settled" and thus closed and reported as a "R5" to the credit bureau's and again considered "settled". If for whatever reason they try to fuck me later by collecting the remainder of the non-settled amount I have the letter of agreement to shove up their asses. Also, Jen how would I be able to know whether one of those non-profit companies were reputable or not? I remember my sister was scammed for about $6,000 by one of those debt management companies a few years ago.

S-some are reputable, some are not. Reputable companies will employ certified counselors by the NFCC (National Foundation for Credit Counseling). If the company is affiliated by the NFCC, they're fine.




Sometimes its the safest way. The climate is very bad at the moment though and banks are, at present, not always keen to lend even to existing borrowers.
Compare what you pay now to what you would pay with the additional amount rolled into the mortgage. The only way you would know what that is, I suggest, would be by speaking to your mortgage lender. They may charge an upfront fee.

Srsly, it's never safe to roll unsecured debt into a secured loan (like a second mortgage). Again, if you don't pay your credit cards, there's not much they can do other than ruin your credit. If you don't pay your mortgage, you'd better pack your stuff. Also, the problem with using a second mortgage to pay off your credit card debt is that people don't generally get rid of their cards. Then they have two mortgages, and the same credit card debt they had before. In some cases, a Chapter 13 filing won't even save their home.




capt. I have a question. I owe like 1,300 dollars on one card and another 700 on another. I make payments but i still use the cards thats why I still owe so much. So will my credit get screwed if I continue this? For only having credit for 2 years i think its still pretty good.


No, it won't screw up your credit rating unless you pay late/miss a payment.


i have heard the courts are really starting to crack down on who they are allowing to file for bankruptcy, too, since it has become such an epidemic. guess it's not as easy anymore.

Kinda but not really. The credt card companies just have a right to challenge your filing and force you to work out a payment program if they can prove you charged them all up and then declared BK. If you charge them all up and wait several months and then declare you will most likely be fine.


They've always had a right to challenge the bk filing, regardless of the new laws. I remember that Sears was notorius for sending a representative to challenge each bk filing they were included in. The new laws went into effect after I left the agency, so I can't speak for certain, but it's my understanding that the new laws force you into credit counseling before you can file a chapter 13.

canexplain
09-01-2008, 09:18 PM
i tell you something i think really sucks and a lot of people dont know this .... if you are late on one card, say a visa, then if you have say an american express, they can raise your rate on that card just because you are late on a totally different card .... a holes ....x****

TeamCoachellaHellYeah
09-02-2008, 06:19 PM
I just wanted to say thanks to everyone for the advice....wish me luck on that loan!!