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Should I take out second mortgage to pay for credit card?

Posted on: 29th May, 2006 05:11 am
Due to being out of work for illness and other factors, I got behind on my mortgage. Fortunately the loan company worked with me and we did a loan remodification. Now I am being garnished for a credit card and am afraid I won't be able to make my payments for about 5 months. Should I try to take out a 2nd mortgage to carry me and then use what is left to pay back on the 2nd mortgage? I will be in good shape again in 5 months but don't want to lose my home and have no where to get and finances.
Welcome crates,

It is better to go for credit card debt consolidation and get rid of the credit card debts rather than taking out a second loan.
Posted on: 31st May, 2011 11:55 pm
i think everyone is in agreement that tapping one's home equity is not a valid way of eliminating credit card debt.

however, this also depends on the individual consumer. as an example, many years ago, my then-wife and i borrowed to pay several debts off, using a home equity line of credit. we then maintained our credit cards at minimal levels and took advantage of some tax-deductible interest on the heloc, and we were able to maintain terrific credit records because the new transaction allowed us to handle things more effectively.

conversely, a home equity line of credit for someone in my current situation would be a bad move. my income is drastically less than it was a few years ago, and my existing debt load is quite a bit higher. trading in my equity for a loan to pay off these annoying debts wouldn't be productive in my current circumstance.

i can witness to the effectiveness of using a home equity loan to consolidate, as well as to the ineffectiveness of doing so. it really all depends on the specific situation of the borrower(s).
Posted on: 01st Jun, 2011 01:50 pm
You should go for second mortgage only if you are in a pool of debts, facing financial hardships and you didn't earn much to pay off your debt. You will always receive a second mortgage on your home's equity therefore, proper planning and strategy is required else it could make situations worse for you.

Get your at "http://www.creditscore.com/"

[External link deactivated as per forum rules. Thanks.]
Posted on: 28th Sep, 2012 03:17 am
applying for a second mortgage to pay a previous debt is not really a good idea. but since you have no other resources aside from taking out a second mortgage, you just need to make sure to practice a strict discipline in managing your finances and paying off your debt because if you don’t, then you might end up, taking out a third loan to pay for the second mortgage, then a fourth loan to pay for the third, and so on. good luck!
Posted on: 24th May, 2013 03:05 am
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