Refinancing the mortgage on your home in order to pay off credit card debt was a popular option for people 5+ years ago. However, with the drop in home values, lower equity in homes, and higher lending qualifications it is near impossible to pay off credit card debts with a new home mortgage.
If you have significant credit card debt, it is likely that your credit score has suffered as a result. This will make is very difficult for you to qualify for an advantageous loan when refinancing your mortgage. The banks only want to lend money to people with perfect credit, low debt amounts, and a lot of disposable income. People that don’t fit that description, then have to choose another debt relief option.
It is not advised to trade unsecured debt for secured debt. Credit card debt is unsecured, meaning that if you fail to pay it off your credit score will suffer but creditors can’t repossess your property. The mortgage on your home is a secure debt meaning if you fail to make those payments you could potentially lose your home. Unless you are 100% certain that you will be able to consistently make those payments, a foreclosure on your home is not a risk that we recommend taking.
Better options for dealing with credit card debt include debt settlement, debt management, and bankruptcy. Accredited Debt Relief can help you determine the best debt relief option for your individual situation.
To learn more about the debt relief options available to you including California debt relief, Florida debt relief, New York debt relief, and Texas debt relief options visit http://www.accrediteddebtrelief.com/.