Consolidating debt new mortgage
The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content.Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered. Then sign up for Credit Cards.com’s weekly e-newsletter for the latest news, advice, articles and tips. Once a week you will receive the top credit card industry news in your inbox. "The theory of turning higher debt rates (credit cards) into lower ones (mortgage) is a great idea," says White in an e-mail, "but it usually doesn't work because many of the people who end up in this situation have a habit of spending without conscious decision making." Gayle and Jim Mc Weeney are determined to break that habit.They refinanced their New Jersey home in July, rolling ,000 of credit card and car loan debt into their 30-year fixed-rate loan."It's not fun." White recommends setting up a reward for achieving certain goals, "something you've wanted but haven't been able to afford." For Gayle Mc Weeney, it won't be a new Lexus."That first month with no payments, it sure is tempting to go hog wild," says Mc Weeney. Treat yourself to a nice dinner out and leave it at that." See related: 10 worst credit card mistakes, 8 things you must know about credit card debt, 9 things you must know about debt consolidation, Keep credit scores clean when closing on a home, Want to refi?
Since much of their credit card debt went toward home repairs, he convinced them to take out an extra ,000 to stash away as an emergency fund. While the couple's mortgage payment increased by 5 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted 0 in monthly savings.First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.Their adviser also helped them design a plan to avoid future debt and pay off their mortgage early."It's extremely helpful to have a good adviser," Gayle says.
"Not only does he help us think outside the box, he will hold us accountable.