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Ballooned line of credit now larger than mortgage
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my line of credit owing has steadily grown to where it is approximately double the amount remaining on my mortgage, and the interest payments are killing me. What would be the best way to consolidate those two? I have no other debt.
mortgage credit debt-reduction
asked 6 hours ago
Debt-ridden Dude
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up vote
2
down vote
favorite
my line of credit owing has steadily grown to where it is approximately double the amount remaining on my mortgage, and the interest payments are killing me. What would be the best way to consolidate those two? I have no other debt.
mortgage credit debt-reduction
asked 6 hours ago
Debt-ridden Dude
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
2
down vote
favorite
up vote
2
down vote
favorite
my line of credit owing has steadily grown to where it is approximately double the amount remaining on my mortgage, and the interest payments are killing me. What would be the best way to consolidate those two? I have no other debt.
mortgage credit debt-reduction
asked 6 hours ago
Debt-ridden Dude
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
my line of credit owing has steadily grown to where it is approximately double the amount remaining on my mortgage, and the interest payments are killing me. What would be the best way to consolidate those two? I have no other debt.
mortgage credit debt-reduction
mortgage credit debt-reduction
asked 6 hours ago
Debt-ridden Dude
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 6 hours ago
Debt-ridden Dude
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 6 hours ago
Debt-ridden Dude
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 6 hours ago
Debt-ridden Dude
111
asked 6 hours ago
Debt-ridden Dude
111
111
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Debt-ridden Dude is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
add a comment |Â
2 Answers
2
active
oldest
votes
up vote
3
down vote
Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial media, all television recommends a high credit score so you can borrow and buy from them today. Okay off soap box.
If your house is worth more than the two combined loans, you are probably best off getting a new mortgage and putting both loans under one payment. It may be inefficient interest wise, and it will be very inefficient if PMI is required, but at least the balances will not be growing.
Or, you can drastically cut your life style, get on a written budget, work more (second job or overtime) and pay down this loan so it is out of your life. This may be the only choice if the combined loans are greater than the worth of the house. BTW, this is what I would recommend.
Interest payments hinder a person's ability to build wealth. With the kind of loan you are talking about, it can destroy many years of hard work. It needs to go away. Treat this as an emergency. However, you can do this.
answered 5 hours ago
Pete B.
46.8k1098147
add a comment |Â
up vote
3
down vote
The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can.
You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to look at what that costs you. Closing costs can add half of a percentage point to the overall cost of the loan, so if you can get a plan to pay off the other debt in 3-5 years (a typical break-even point of a refinance), consolidating may not be worth the cost unless your current debt is at a significantly higher interest rate, and you can reduce the interest you pay. The danger is that consolidating often extends the term of the loan, reducing the immediate pain but extending it out for a much longer period. It can also make you feel like you've accomplished something, and enables you to KEEP spending, potentially leaving you with MORE debt than you started with.
So until you fix the problem, consolidating may actually make your problem worse.
One thing that helped me when I was in debt is when I think about buying something, I think that every dollar I spend at this point is borrowed money. Think about how long it will take you to pay off the debts, and how much interest the purchase will cost you. It might make that vacation or new HDTV look less appealing.
answered 5 hours ago
D Stanley
47.4k7143154
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial media, all television recommends a high credit score so you can borrow and buy from them today. Okay off soap box.
If your house is worth more than the two combined loans, you are probably best off getting a new mortgage and putting both loans under one payment. It may be inefficient interest wise, and it will be very inefficient if PMI is required, but at least the balances will not be growing.
Or, you can drastically cut your life style, get on a written budget, work more (second job or overtime) and pay down this loan so it is out of your life. This may be the only choice if the combined loans are greater than the worth of the house. BTW, this is what I would recommend.
Interest payments hinder a person's ability to build wealth. With the kind of loan you are talking about, it can destroy many years of hard work. It needs to go away. Treat this as an emergency. However, you can do this.
answered 5 hours ago
Pete B.
46.8k1098147
add a comment |Â
up vote
3
down vote
Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial media, all television recommends a high credit score so you can borrow and buy from them today. Okay off soap box.
If your house is worth more than the two combined loans, you are probably best off getting a new mortgage and putting both loans under one payment. It may be inefficient interest wise, and it will be very inefficient if PMI is required, but at least the balances will not be growing.
Or, you can drastically cut your life style, get on a written budget, work more (second job or overtime) and pay down this loan so it is out of your life. This may be the only choice if the combined loans are greater than the worth of the house. BTW, this is what I would recommend.
Interest payments hinder a person's ability to build wealth. With the kind of loan you are talking about, it can destroy many years of hard work. It needs to go away. Treat this as an emergency. However, you can do this.
answered 5 hours ago
Pete B.
46.8k1098147
add a comment |Â
up vote
3
down vote
up vote
3
down vote
Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial media, all television recommends a high credit score so you can borrow and buy from them today. Okay off soap box.
If your house is worth more than the two combined loans, you are probably best off getting a new mortgage and putting both loans under one payment. It may be inefficient interest wise, and it will be very inefficient if PMI is required, but at least the balances will not be growing.
Or, you can drastically cut your life style, get on a written budget, work more (second job or overtime) and pay down this loan so it is out of your life. This may be the only choice if the combined loans are greater than the worth of the house. BTW, this is what I would recommend.
Interest payments hinder a person's ability to build wealth. With the kind of loan you are talking about, it can destroy many years of hard work. It needs to go away. Treat this as an emergency. However, you can do this.
answered 5 hours ago
Pete B.
46.8k1098147
Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial media, all television recommends a high credit score so you can borrow and buy from them today. Okay off soap box.
If your house is worth more than the two combined loans, you are probably best off getting a new mortgage and putting both loans under one payment. It may be inefficient interest wise, and it will be very inefficient if PMI is required, but at least the balances will not be growing.
Or, you can drastically cut your life style, get on a written budget, work more (second job or overtime) and pay down this loan so it is out of your life. This may be the only choice if the combined loans are greater than the worth of the house. BTW, this is what I would recommend.
Interest payments hinder a person's ability to build wealth. With the kind of loan you are talking about, it can destroy many years of hard work. It needs to go away. Treat this as an emergency. However, you can do this.
answered 5 hours ago
Pete B.
46.8k1098147
answered 5 hours ago
Pete B.
46.8k1098147
answered 5 hours ago
Pete B.
46.8k1098147
answered 5 hours ago
Pete B.
46.8k1098147
46.8k1098147
add a comment |Â
add a comment |Â
up vote
3
down vote
The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can.
You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to look at what that costs you. Closing costs can add half of a percentage point to the overall cost of the loan, so if you can get a plan to pay off the other debt in 3-5 years (a typical break-even point of a refinance), consolidating may not be worth the cost unless your current debt is at a significantly higher interest rate, and you can reduce the interest you pay. The danger is that consolidating often extends the term of the loan, reducing the immediate pain but extending it out for a much longer period. It can also make you feel like you've accomplished something, and enables you to KEEP spending, potentially leaving you with MORE debt than you started with.
So until you fix the problem, consolidating may actually make your problem worse.
One thing that helped me when I was in debt is when I think about buying something, I think that every dollar I spend at this point is borrowed money. Think about how long it will take you to pay off the debts, and how much interest the purchase will cost you. It might make that vacation or new HDTV look less appealing.
answered 5 hours ago
D Stanley
47.4k7143154
add a comment |Â
up vote
3
down vote
The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can.
You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to look at what that costs you. Closing costs can add half of a percentage point to the overall cost of the loan, so if you can get a plan to pay off the other debt in 3-5 years (a typical break-even point of a refinance), consolidating may not be worth the cost unless your current debt is at a significantly higher interest rate, and you can reduce the interest you pay. The danger is that consolidating often extends the term of the loan, reducing the immediate pain but extending it out for a much longer period. It can also make you feel like you've accomplished something, and enables you to KEEP spending, potentially leaving you with MORE debt than you started with.
So until you fix the problem, consolidating may actually make your problem worse.
One thing that helped me when I was in debt is when I think about buying something, I think that every dollar I spend at this point is borrowed money. Think about how long it will take you to pay off the debts, and how much interest the purchase will cost you. It might make that vacation or new HDTV look less appealing.
answered 5 hours ago
D Stanley
47.4k7143154
add a comment |Â
up vote
3
down vote
up vote
3
down vote
The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can.
You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to look at what that costs you. Closing costs can add half of a percentage point to the overall cost of the loan, so if you can get a plan to pay off the other debt in 3-5 years (a typical break-even point of a refinance), consolidating may not be worth the cost unless your current debt is at a significantly higher interest rate, and you can reduce the interest you pay. The danger is that consolidating often extends the term of the loan, reducing the immediate pain but extending it out for a much longer period. It can also make you feel like you've accomplished something, and enables you to KEEP spending, potentially leaving you with MORE debt than you started with.
So until you fix the problem, consolidating may actually make your problem worse.
One thing that helped me when I was in debt is when I think about buying something, I think that every dollar I spend at this point is borrowed money. Think about how long it will take you to pay off the debts, and how much interest the purchase will cost you. It might make that vacation or new HDTV look less appealing.
answered 5 hours ago
D Stanley
47.4k7143154
The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can.
You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to look at what that costs you. Closing costs can add half of a percentage point to the overall cost of the loan, so if you can get a plan to pay off the other debt in 3-5 years (a typical break-even point of a refinance), consolidating may not be worth the cost unless your current debt is at a significantly higher interest rate, and you can reduce the interest you pay. The danger is that consolidating often extends the term of the loan, reducing the immediate pain but extending it out for a much longer period. It can also make you feel like you've accomplished something, and enables you to KEEP spending, potentially leaving you with MORE debt than you started with.
So until you fix the problem, consolidating may actually make your problem worse.
One thing that helped me when I was in debt is when I think about buying something, I think that every dollar I spend at this point is borrowed money. Think about how long it will take you to pay off the debts, and how much interest the purchase will cost you. It might make that vacation or new HDTV look less appealing.
answered 5 hours ago
D Stanley
47.4k7143154
answered 5 hours ago
D Stanley
47.4k7143154
answered 5 hours ago
D Stanley
47.4k7143154
answered 5 hours ago
D Stanley
47.4k7143154
47.4k7143154
add a comment |Â
add a comment |Â
Debt-ridden Dude is a new contributor. Be nice, and check out our Code of Conduct.
Debt-ridden Dude is a new contributor. Be nice, and check out our Code of Conduct.
Debt-ridden Dude is a new contributor. Be nice, and check out our Code of Conduct.
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