Is consolidating credit card debt a good idea

Mistakes To Avoid If you want or need to consolidate, be aware of the following..

Don't use a home equity loans, says Roberta Lee-Driscoll, a certified financial planner in Honolulu; “if someone has five credit card debts and they consolidate it into a home equity line of credit that is a no-no.” That's because credit card debt is considered unsecured debt, meaning – there is no collateral to back it up.

They're now saving

They're now saving $1,000 per month -- $350 less in mortgage, $650 less in credit card payments.

It was their third refi since buying their house in 1995 and, this time, they hired a professional adviser.

Since much of their credit card debt went toward home repairs, he convinced them to take out an extra $20,000 to stash away as an emergency fund. While the couple's mortgage payment increased by $175 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted $700 in monthly savings.

"We were property-rich and income-poor," says Jo Ann.

The couple had refinanced six years before, but when mortgage rates dropped to historic lows in May, they saw an opportunity to eliminate their credit card debt by refinancing their home and rolling $25,000 of credit card debt into the loan.

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They're now saving $1,000 per month -- $350 less in mortgage, $650 less in credit card payments.It was their third refi since buying their house in 1995 and, this time, they hired a professional adviser.Since much of their credit card debt went toward home repairs, he convinced them to take out an extra $20,000 to stash away as an emergency fund. While the couple's mortgage payment increased by $175 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted $700 in monthly savings."We were property-rich and income-poor," says Jo Ann.The couple had refinanced six years before, but when mortgage rates dropped to historic lows in May, they saw an opportunity to eliminate their credit card debt by refinancing their home and rolling $25,000 of credit card debt into the loan.

,000 per month -- 0 less in mortgage, 0 less in credit card payments.It was their third refi since buying their house in 1995 and, this time, they hired a professional adviser.Since much of their credit card debt went toward home repairs, he convinced them to take out an extra ,000 to stash away as an emergency fund. While the couple's mortgage payment increased by 5 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted 0 in monthly savings."We were property-rich and income-poor," says Jo Ann.The couple had refinanced six years before, but when mortgage rates dropped to historic lows in May, they saw an opportunity to eliminate their credit card debt by refinancing their home and rolling ,000 of credit card debt into the loan.

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