Posted on: 26th Mar, 2010 04:06 am
I've heard that you always have the option of using the credit cards to pay off the Federal tax payment, Yeah, there's a fee for it I know. Now my question is that if I owe $15,000 on my house. Can I take out a very little amount for the taxes for about a year and pay off the mortgage first, and then pay off the taxes with the credit cards. Then can I walk away from my credit card debt? I'm thinking in these terms because I know that credit card debt is unsecured.
Any opinion/suggestion is welcome…
Thanks in advance.
Any opinion/suggestion is welcome…
Thanks in advance.
Hi Lindsay!
Welcome to forums!
If you do not pay your credit card debts, it will have a negative impact on your credit report. Your credit score would get reduced and the creditor can send it to collections. Also, you should have high enough credit card limit to pay off your mortgage, taxes as well as make other purchases. You should also remember that in most cases, your lender may not allow you to pay your mortgage dues by credit cards.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you do not pay your credit card debts, it will have a negative impact on your credit report. Your credit score would get reduced and the creditor can send it to collections. Also, you should have high enough credit card limit to pay off your mortgage, taxes as well as make other purchases. You should also remember that in most cases, your lender may not allow you to pay your mortgage dues by credit cards.
Feel free to ask if you've further queries.
Sussane
lindsay, i'm not certain i got what you're driving at, but i do know that walking away from your credit cards isn't necessarily a solution to anything.
you didn't say whether you plan to remain in your home or not. based on that, i have to assume that you will. keep in mind that any creditors who you stop paying has the right to sue you and to obtain a judgment. once that's taken place, the creditor would be able to file a judgment lien against your property if you don't pay according to the terms of the judgment. in that case, if you're still in the home, you'll have a lien or liens that would need to be paid in full at the time you sell the home. that might not bother you too much, based on the amount; but as sussane noted, it will also have a negative effect on your credit, thereby making it more difficult for you to obtain any other credit in the future.
you didn't say whether you plan to remain in your home or not. based on that, i have to assume that you will. keep in mind that any creditors who you stop paying has the right to sue you and to obtain a judgment. once that's taken place, the creditor would be able to file a judgment lien against your property if you don't pay according to the terms of the judgment. in that case, if you're still in the home, you'll have a lien or liens that would need to be paid in full at the time you sell the home. that might not bother you too much, based on the amount; but as sussane noted, it will also have a negative effect on your credit, thereby making it more difficult for you to obtain any other credit in the future.
