Explain consolidating mortgage with existing credit card debt.?
101746
Credit card debt has one of the highest interest rates, and thus should be avoided. Consolidating it into a mortgage means borrowing extra money on your house to pay off the credit card. Since mortgages are generally at a lower interest rate, it sounds like a good idea.\nThe flip side of it is that you are borrowing the money for 30 years, having to pay a higher mortgage bill for all that time, which may mean it costs more in the long run, plus your putting your home up for collateral on money you spent for whatever you bought with your credit card.\nMaybe the better bet is to concentrate on paying off those credit cards ASAP and swearing off borrowing on credit cards. Using credit cards and carrying a balance on them = buying things you don't have the money to pay for. No one should do that for long...\nFor more info on how to live without debt, or the baby steps to getting out of debt see www.daveramsey.com.\nHis book "The Total Money Makeover" is a real plan that works. His radio show can be listened to on the website, check it out...he explains things better than I can and really helped me.\nBest of luck
338863
Well, the debt isn't going away, but there are things you can do to lower your monthy payment (which I assume is your immediate concern) -- consider private loan consolidation.\n\nwww.finaid.org (a great resource) offers a list of private loan consolidators, as well as some sound advice. Here is their list: http://www.finaid.org/loans/privateconsolidation.phtml.  {Note: Sallie Mae recently came out with w private loan consolidation product}\n\nNot to push a certain company, BUT, of the companies listed above, you might look first at Sallie Mae, Key Bank, Wells Fargo, and NelNet, as they are established education loan lenders. Some lenders on www.finaid.org's list may no longer offer private consolidation; others may require at least some of your loans to have been borrowed through them to begin with. Key Bank's program does not require that you have loans with them in order to consolidate with them now.\n\nNote: By consolidating your private loans, you should expect to see a slight increase in your interest rate (and obviously, your overall accrued interest); it is up to you to decide whether this increase is outweighed by the benefit of a lower monthly payment (if it helps you pay your other bills and preserves a good credit rating, the answer may be a resounding "yes"). Take advantage of any benefits that the company has to offer: consider having your payments automatically deducted from your checking/savings account each month -- it can often save you .25% off your interest rate.
872664
the info I have is for the US but it should be similar for Canada, most credit card companies will sell your debt to a collection agency within 6 months once it goes to collection you can normally negotiate down to between .40 and .50 per dollar owned if they will not negotiate with you the first time you call then let them stew for a month or so and then go at them again until they accept your offer it may be time consuming but worth it Good Luck
479053
The best way to consolidate your credit cards is through www.debtscape.org   I have been using it for 4 years now and I have less than a year to go and I started out with over $30,000 in debt! \n\nYou can tell them I sent you\n\nTraci Sorgi\n\nPS never close your accounts after they are paid, you will have to establish credit all over again, and it will be hard to do this with NO credit!
892241
If you were to file a chapter 7 now on your credit report it will show that you would have filed 2 bankruptcies.  Under the new bankruptcy laws you will have to go to counseling before filing any bankruptcy and the counselors they are using are from Consumer Credit Counseling Services.  \n\nYou should continue with the chapter 13 or just payoff those bills with the funds you received from the sale of your home.  It will save your credit and you won't be turned down to buy another home in the future.   You also want to start getting your credit back on track by applying for a secured credit card.  Stay away from retail and department credit cards.  These type of cards are finance companies and will lower your credit score.
838795
Do you have credit card debt?  Please explain what you mean by debt's into loans (do you mean like payday loans) just to claify, this often means different things to different people? and what are the monthly bills? \n\n First, cut all "luxuries" down to the bone, cable, cellphones, internet, eating out, grande latte's, etc..If you have two cars, can you get by with just one? If so, sell the other. Sell anything that will help to pay off your debt.  Once your out of debt, you can always replace what you sell..but this time paying all in cash.\n\nIf you have credit cards, call the company and explain to them what is going on, emphasize your desire to pay the debt, and see if you can work out a better payment arrangment...most will be willing to...if not, look into a  debt consolidation company.  \n\nI need to know more about your situation before I could give you anymore advice.  Do NOT touch the equity in your home.  Here is  a site that I found helpful...http://www.crown.org/  E-mail me if you want to talk more indepth about your situation..
1077886
Consolidation of your student loans does not count against your credit score AT ALL!!!  Do not believe the person who posted earlier saying that.  It is no where near as detrimental as a bankruptcy.  In fact it is not detrimental at all.\n\nBy consolidating your loans you are reducing all of your loan payments to one payment.  This is by the best way to go and it is was I did with my school loans totalling $130,000.\n\nThere really is no downside to consolidation.  I would recommend doing it with the federal government rather than a private lender because interest and fees will be lower with the former.
994345
If you can, find another way to pay off your credit card debt.  Of course, this is assuming that you're not about to go bankrupt or anything.  It sounds like you're not, as you are moving into a new home.  Don't borrow from your retirement, as that will start a bad habit.  It'll make it easier to do again and again, and then you'll be left with no money for retirement.
4622
Consolidation loans cost way to much. What I have done sucessfully when I was in the position you are, was to create a letter to each creditor, in which I stated 1.that I admit I owe them the full amount, 2.that I plan to pay them in full and as soon as possible, 3.that I can afford monthly payments of $ and am enclosing the first payment, 4.that I am requesting a reduction or elimination of interest, fees, and late charges. Then for each creditor, you get a copy made, print "COPY" in large red letters across the letter, and send it, by certified mail, signature required, to each creditor. Now here is the law, if they sign the letter and accept that payment, they have, in effect, made a binding contract with you, on the terms you offered. In most cases, they will reduce or suspend all interest. Once you have an agreement with each and all of your creditors, then you can move out! Be faithful in your payments, and you will be amazed at how quickly your debts melt away. Hope this helps!
35392
In general - you shouldn't be maxing out your cards at all - it is a very bad habit to get into. Living on borrowed money isn't a wise idea. Credit cards are a tool. They should be used instead of cash so that you don't have to carry cash around with you. But it doesn't mean that you don't have the money when it comes time for that bill to be paid. \n\nIf you only charge what you KNOW you can afford to pay off - you will be safe and build a very good credit rating. Keeping a small balance is not a bad thing but - try and pay the majority of it off this way you don't have to pay interest on it.\n\nI have been through it. It took us 10 long years to get out of debt. We had over $57,000 in debt and very good credit though. We never missed payments but just seemed to be swamped with it. Be patient for the credit transfer deals that let you have the rate until your balance is paid in full. These are the ones you will want for the long haul. \n\nWe transfered to a few cards. one of them was the BEST - 0% until it was paid off! That was amazing but true. There was no limited time. then we also transfered onto a few cards with 3.99% interested until paid - Again no limited time. \n\nThis allowed us to pay MUCH MORE THAN THE MINIMUM.  paying the min will not help - it will usually get you worse off because you debt will grow usually from other purchases going onto it.  Just stop using the cards and pay them all off.  \n\nStay away from the Transfer offers that only give you a matter of months to pay. \n\nI just can't stress that enough.   cause you will end up having a huge percentage rate a year from now and then your debt will be compounding more than it ever has.  \n\nI am standing here today - debt free!!! Yes we paid off the entire $57,000 and it is all due to the stratigy above - never miss a payment and pay as much as you can towards the highest interest rates first. Minimum payments for the lowest rates. After a while you will see your debt come down, and your credit history improve.  We did it all on our own.
871726
The answer is, it all depends, of course you hate that answer.  Generally consoldated debt loans require you to put forth something as collateral if I remember correctly.  Homes, Cars, and Boats are all perfect good examples of this.  Because you have to put some form of collateral, you generally can "borrow" more money at a lower interest rate as you have some form of collateral.\n\nLine of Credit takes no additional form of collateral but generally have higher rates.  Lines of credit do have good introductory offers that last 6-12 months.  If you are willing to do you homework, it is possible to transfer balances from one line of credit to another to keep the interst rate low if you are far in debt/need to borrow a lot of money quickly.
745695
Before you take out any mortgage, pay off your credit card debt and wait a couple of months after making the payment because credit cards companies are always late to report your payment.
1173074
call them all and set up payment plans\n\nor talk with a credit counseling/debt consolidation company\n\nbest of luck
1137482
As a generic rule of thumb, when you start your debt pay-off snowball...\n\n1.  Cut up the cards\n2.  Pay minimum payments on all but the one with the lowest balance.\n3.  On the one with the lowest-balance, pay all that you can until it's paid off, then do the same to the next one, then the next one, so on.\n\nHowever, I, personally, would do that in the order of highest interest-rate, but I make quite a bit more than my payments need, and have lots of room to flex.\n\nDo NOT consolidate, unless you can take high-interest debt into low-interest, with no transfer fees.  The goal here is to avoid throwing unnecessary money out the window, and actually making some progress.  \n\nIf you have equity in your house, you may be able to roll your CC debt into a 2nd mortgate or HELOC (home equity line of credit), that you attack as aggressively as you possibly can until paid off.\n\nIt doesn't matter where debt is, it's still debt.  The only way to get rid of it is to throw money at it as aggressively as possible.  It may take years, so be patient.\n\nSome things that can help: garage sales, selling unnecessary stuff on eBay or elsewhere, sell a car and buy a reliable used one, spend less on living, reduce other bills like cable/satellite service, etc.  You need to make your income work for you.  In fact, it may not be a bad idea to pick up a simple evening job as a 2nd, until you pull your head above water (pizza delivery, for example).\n\nI hate to be so blunt, but it may take some serious sacrifice, on your part, to get ahead.  Your income and determination are the only things that can do this.
1077715
There is something called "Universal Default" that you need to be aware of.....If an individual screws up on one credit card and another credit card finds out, they can and will shoot up your interest rate in a flash.  It's not enough to protect the standing of just one credit card anymore.  \n\nUnless your business was created properly, via an LLC, you and your "married" assets are vulnerable.    You need an attorney for Chap11.
950907
One thing to remember if/when you pay stuff off (mainly credit cards) is even if you pay a card of so you have $0.00 outstanding that cad will still be looked at as potential debt, so say you have a $5000 limit & you pay off the $1400 you still have the ability to get $5000 more in debt after the home stuff goes through.\nIf you have more than 2 or 3 credit cards consider closing them so it will not be seen as potential debt, if not then pay them off & lower the credit limits to say $1000, Even at 680 it's a pretty good score so even a few months after the home stuff happens yopu can have the limit raised back up again.\nThat may help a bit. Also remember the places that report your  credit only do so about once a month so even if anything does change you may not see any change for 30-60 days.\nOh and dont pay anything late, miss payments etc\n\nIn addition:\nDue to the two silly fools below me I guess I should mention I work for the 2nd largest bank in the world. \nKeeping multiple empty card open is of no help in any way at all. It just show you can get in more debt as soon as you like & that does not look good for credit. As for raising the credit limit well thats just stupid for this persons situation. Not only will you then get more enquiries on you credit report (another bad thing) but it then shows you can get into even more debt.
672549
It sounds fishy.  If you are consolidating and paying for 3 years, it sounds like the deal he offered is that you pay for those 3 years and you are back owing what you owe today, the amount of what you owe.  Why would anyone in their right mind do that?  Maybe because it makes for lower payments today and for the next 3 years, but you'd be much better off taking out a personal loan from a bank and paying off your cards and then paying back the bank and not running up your cards again.