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Need opinions on which way to go....

Posted on: 19th Oct, 2007 08:30 am
I purchased a home last year and this transaction wiped out my savings account. At the time I was in approx $8,000 in credit card debt and managed this debt just fine. Since I have bought this home I have had a lot of "mishaps" to say, that because my savings account was wiped out, I relied on my credit cards. I am now 22,000 in debit with them. Now the credit card companies want to increase my interest rates because my income is stretched so thin now. And it is taking it's toll on my monthly income. I don't want to eventually be in a position where I can no longer afford my home. So I have been researching refinancing, home equity loans, home equity lines of credit and personal loans. I just don't know which route to take, and I am afraid that because of the extensive debt in such a short period of time, I will end up being denied any of them. The only thing that is a good thing is the bank that holds my mortgage is a hometown bank that will not sell my mortgage and I may have more luck with them getting these debts consolidated with my mortgatge with someone who already holds my mortgage. Suggestions?
And just to make this clear too, I have not been late on any of these payments, including my mortgage. I just don't want it to get to that point as I am really starting to feel a big pinch in my wallet every month.
Posted on: 19th Oct, 2007 09:51 am
Welcome Smurfy,

For your credit card debts, you can try out with debt consolidation. Contact any debt consolidation company - they can help you to negotiate with your creditors and reduce your debt burden.
Posted on: 21st Oct, 2007 04:41 am
hello smurfysurfin,

since your debt-to-income ratio is high, you can talk to your lender about a cash-out refinance with a no-ratio loan.

the cash-out refinance might help you to pay off at least a considerable portion of your credit card debt.
Posted on: 21st Oct, 2007 10:41 pm
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