Massive credit card debt!!
lucy2222
16 years ago
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zone_8grandma
16 years agolast modified: 9 years agolucy
16 years agolast modified: 9 years agoRelated Discussions
Home Equity Loan to Pay Credit Card Debt
Comments (12)One of the biggest problems with any scheme to pay off credit cards by using more credit is most people do NOT change their spending habits. The average consumer will take out a home equity loan to pay off outstanding balances and then only 2 or 3 years later find themselves with a home equity loan and credit cards at their max again. That doesn't solve the problem; it makes it worse. Plus there is the potential to lose you home if you fail to make payments on the home equity loan. In my humble opinion, this is not the best solution to your problem unless you and your significant other make some changes in your spending habits. Switching from one low/no interest credit card can be very damaging to your credit score. One of the components of a credit score is how long your current accounts have been open. Longer is better. New credit cards every 6 months will lower your score which means you pay higher rates or cannot qualify for those "teaser" rates. Also, be aware that the teaser rates will escalate very rapidly if you are ever late with a payment. The solution that I suggest to the personal financial management classses I teach is to stop using credit cards for any daily expenses. Save them for emergencies (a death in the family, an earthquake destroys your house, a hurricane is coming and you have to evacuate). Concentrate on paying off one card by paying extra on that card every month but continue to make the minimum payments on every card you have. When that card is paid off, apply that payment to the next card until it is paid off. If you have trouble avoiding temptation with credit cards, put them in a ziplock bag and seal it. Put that bag in another bag and fill it with water. Put both bags in the freezer and leave it there. Anytime you need a card it is available, but you have to wait to thaw it out to use it which means you have time to think about whether or not you really, really NEED what you plan to purchase with credit. While it sounds "dorky" and simplistic, it does work. Good luck...See MoreCredit card debt after someone dies
Comments (12)"The CC company will increase the fees to the merchants, who will increase their prices, which you pay to get the product. Everyone ends up paying for the person who doesn't pay off their own debts." True, but don't forget that everyone also winds up paying for all the people who charge their purchases on credit cards, including cash purchasers. Merchants who offer cash discounts are fairly rare. All the purchasers also pay for the bad judgment CC companies make in extending credit to people who can't afford to repay. Also for the very large profit margins CC companies have enjoyed for the last few decades. And so on and so on. You do realize, all of you, that it's quite likely you will die with CC debt, don't you? Even if you religiously pay the entire balance every month, there will still be the outstanding charges you accrued during the billing cycle you happen to die in. So, everyone, keep those cards charged up because you never know, do you? This could be YOUR billing cycle and you could come out ahead in a big way! But to answer the question at hand, heirs are not personally responsible for the debts of the estate. If someone "dies without estate," the CC companies can try to pressure the heirs into paying them, but they have no legal recourse if the heirs decide not to, which is what I imagine usually happens. So they will be written off in most cases, thereby incrementally increasing the cost of living for all of us who still enjoy that status....See Morelooking for some opinions re refi and credit debt
Comments (5)If you wanted to refi the entire amount, (325+42), that puts you at about 81% LTV. But, that's based on the assessment, not one an appraiser would give you. And, that doesn't include closing costs. So, while that's probably a good estimate, I'd find out what homes in your neighborhood are selling for. Foreclosures have killed so many refi's no matter what credit rating people have. It's sad but true. And, if you do have to end up with a full refi, you don't want to get stuck needing a few thousand dollars. I do think your best bet is to get the modification done first and hope you don't have to do the full refi. Once that's resolved, then you can get rid of those credit cards :) Good luck!...See MoreCancelling credit cards & credit score
Comments (10)Everything I've seen/heard about this is not to cancel credit cards. Cancelling them does affect your credit scores. That said, at one point I had 3 separate credit cards issued by the same bank. I use only one and pay the balance in full every month. I have received letters from the bank requesting that I either use the cards or said cards would be cancelled effective 30 days of the receipt of said letter. I didn't use them, and those accounts have been cancelled. DH hates credit cards and prefers to pay cash for purchases. I did check with the 3 credit bureaus regarding whether the cancellation by the bank for lack of use of those two cards would affect our credit scores. All three claimed that it would not, and I did manage to obtain fax confirmation of that assurance. I did pull reports at 90 days after their cancellation, and our scores hadn't changed. Unless the card company contacts you about cancelling for lack of use, I wouldn't cancel....See Moremyfask
16 years agolast modified: 9 years agojlhug
16 years agolast modified: 9 years agoamoretti
16 years agolast modified: 9 years agolucy2222
16 years agolast modified: 9 years agolucy2222
16 years agolast modified: 9 years agoalphacat
16 years agolast modified: 9 years agoharriethomeowner
16 years agolast modified: 9 years agokitchenshock
16 years agolast modified: 9 years agojoyfulguy
16 years agolast modified: 9 years agotalley_sue_nyc
16 years agolast modified: 9 years agoJonesy
16 years agolast modified: 9 years ago
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