Is Including Credit Card Debt in Mortgage Refinancing Smart?
News from Opposing Views:

by Ciaran John

You can cash out home equity to pay off your credit cards.

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When you refinance your home, you can often take out some equity and use it to pay down your credit card debt. When you do so, you simplify your monthly budget by replacing several bills with one, and you can potentially save money. However, there are both advantages and disadvantages to paying off credit card debt with a mortgage loan.

Default

Credit cards are unsecured, which means your lender has no claim on your home, your car or any other collateral if you default on the debt. Creditors’ rights vary greatly among states but in many instances credit card companies have the right to garnish your paycheck or bank account in order to collect past due debts. If you pay off your credit cards with a home loan, your home is on the lin…………… continues on Opposing Views

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How’s your financial fitness?
News from Scottsbluff Star Herald:

Valerie Salazar and her mother, Esther, were in trouble.

The two had about $ 10,000 in credit card debt, no savings and seemingly no way out.

Salazar said it was a dark time for the family because the money problems were eating at their savings and family ties.

“We did not have a comfortable relationship because of the financial troubles,” she said. “We could hardly sit down and eat dinner together without fighting over it.”

The Salazars are not alone. A job loss or health crisis could spell disaster for many Nebraskans. More than one in four Nebraskans live on the edge of financial ruin with debt and almost no savings to fall back on in the event of an income-depleting emergency.

According to a new report by the Corporation for Enterprise Development, 29 percent of Nebraskans have almost no money saved for the future or to cover emergencies. The state ranks 19th overall for financial stability amongst its residents, the report stated.

 This report, the 2013 Assets & Opportunity Scorecard, defines these residents as “liquid asset poor,” meaning they lack adequate savings to cover basic expenses at the federal poverty level for three months if they suffer a loss of stable income.

Included in this group are many who would consider themselves middle class…………… continues on Scottsbluff Star Herald

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