I have been helping folks abused by the Credit card corporations for the last three years, and folks ask me all of the time if it’s a brilliant idea to take out a mortgage to pay down the visa cards. My answeris take care if you do, as it won’t be your top choice to lose the cards by taking out a 2nd or third mortgage. I won’t tell you what number of folks call me and say they took out a mortgage to repay the visa cards, and now they will not make the mortgage payments. I tell them we will not help you as you took unsecured debt and rolled it into your house, which is secured debt. There’s a significant difference between secured debt & unsecured debt.
Secured debt is your property, vehicle, or other physical things that you finance. Unsecured debt is credit cards, private or signature loans or credit lines. If you miss a pair secured loan payments, they just take the home or automobile.
With a Credit card , they can’t take back the flick and popcorn you charged two weeks back. So if you are taking out a mortgage to pay down our card debt, and you were given hurt or lost your job, and you missed some payments, you might loose your house.
If you failed to put the debt on your house, they won’t take your house. Worst thing is they’d try to put a lien, though that needs a court appearance we have secret methods we use to get a summons to appear discharged using their own methods. Another vital thing to think about is that unless you change your expenditure habits & cut up the cards, I assure you will charge them to the edge in a year or two ; then you’ve got the mortgage and the card payments and you’ll have two payments you can not make. Sadly , those are the folks that call me when it’s too late for us to help them. If you are considering using your home equity to repay visa cards, you may want to rethink that call.