I am $50K in credit card debt, what are my options in terms of debt consolidation?
Written By: admin on June 12, 2009
One Comment
I own my home, but do not have enough equity built to refinance and get K to pay off credit card debt-what are my options? Someone told me a second mortgage may work, but I have only owned my home for 14 months. Balance on my current mortgage is K, home value is max K.
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Tags: credit card debt, Credit Cards, current mortgage, home value, Second mortgageTags: credit card debt, current mortgage, home value, Second mortgage
You can't borrow your way out of debt. Try and locate a lower interest credit card and transfer your balance. Some accounts have 0 transfer fees and maybe 0 interest or low introductory interest for the first few months. If you have that small grace period you need to pay as much as you possibly can straight away and lower that principal amount. Scrimp and save, cut coupons, brown bag your lunch, get a roommate, whatever it takes to start paying down that debt. That is a huge amount of money if you are paying 18%–your interest alone is probably a couple of hundred every money and if you are only paying the minimum you aren't making a dent in the actual debt.
You have my sympathies. I was in debt for a long time and it took a long time to get that debt monkey off my back. Now that it is, I drive a 14 year ancient car and reckon carefully about anything I will owe on for more than a few months. It is enormously freeing not to be in debt. You have so many options and you sleep better. Excellent luck!