Consolidating credit card debt for students penfriends dating

“But don’t run out and use it for credit cards for vacations, for frivolous things because it is not an unlimited source, as we saw when the market turned.” The main concern with using equity to pay off credit cards is that often, it is a temporary solution to a much bigger problem.“The real issue behind the credit card debt is that they may need to create a better spending plan for the family,” Harper says.In order to put your problems with credit and student loan debt behind you, one option is to schedule an appointment with a certified consumer credit counselor.A credit counselor can assist in determining a solution for your credit and debt issues.A ,000 credit card balance at 16 percent interest plus a 0,000 mortgage at 4.5 percent interest rack up 0,936 in interest payments over the life of the loans.Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about ,642 in interest.

But in some cases, it’s possible to qualify for a debt consolidation mortgage by excluding the credit card debt from the DTI, as long as the homeowner agrees to pay off and close the accounts at closing, says Matt Hackett, operations manager for Equity Now.Consolidating the two into a 15-year mortgage at 4.5 percent saves almost 0,000 more.Those with enough equity in their homes have been able to substantially reduce the monthly payments on credit card debt, student loans and personal loans, says Michael Moskowitz, president of Equity Now, a mortgage bank in New York City.In fact, you end up paying more and staying in debt longer because of so-called consolidation.Get the facts before you consolidate or work with a settlement company.

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