Mixing
Credit debt now larger than mortgage
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up vote
11
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My line of credit owed has steadily grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt.
What would be the best way to consolidate these?
mortgage credit debt-reduction
edited 18 mins ago
Bob Baerker
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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
11
down vote
favorite
My line of credit owed has steadily grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt.
What would be the best way to consolidate these?
mortgage credit debt-reduction
edited 18 mins ago
Bob Baerker
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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.
6
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
1
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago
add a comment |Â
up vote
11
down vote
favorite
up vote
11
down vote
favorite
My line of credit owed has steadily grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt.
What would be the best way to consolidate these?
mortgage credit debt-reduction
edited 18 mins ago
Bob Baerker
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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 owed has steadily grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt.
What would be the best way to consolidate these?
mortgage credit debt-reduction
mortgage credit debt-reduction
edited 18 mins ago
Bob Baerker
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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.
edited 18 mins ago
Bob Baerker
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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.
edited 18 mins ago
Bob Baerker
11.8k11743
edited 18 mins ago
Bob Baerker
11.8k11743
edited 18 mins ago
Bob Baerker
11.8k11743
11.8k11743
asked 23 hours ago
Debt-ridden Dude
5613
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 23 hours ago
Debt-ridden Dude
5613
asked 23 hours ago
Debt-ridden Dude
5613
5613
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.
6
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
1
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago
add a comment |Â
6
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
1
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago
6
6
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
1
1
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago
add a comment |Â
3 Answers
3
active
oldest
votes
up vote
24
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 23 hours ago
D Stanley
47.7k7143155
11
I think that every dollar I spend at this point is borrowed money.It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.
– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
add a comment |Â
up vote
13
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 23 hours ago
Pete B.
46.9k1098148
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
add a comment |Â
up vote
3
down vote
Firstly, your Debt is not something you “work on†- It is a HUGE, FLAMING EMERGENCY!!!
The core of the problem seems to be that you are spending more than is sustainable for you. While re-mortgaging and such might at first glance seem to help, unless you drastically change your lifestyle, they will only make things even worse for you in the long run. Getting a second job can help, but only if you also change your lifestyle -- otherwise with more income you'll just start spending more and soon be in even worse situation.
What that means is you need to get out of consumerist mentality, and decrease your spendings a lot. This is some of the things you need to do:
- Take a detailed list of all your expenses (collect all receipts for cash purchases and work through you banking monthly statements line by line) and make a budget. Until you do, you have no idea where you really stand.
- Stop eating out and having fast food
- No Starbucks or evening pub visits too
- Cancel your cable TV
- Sell your car and use public transport, or even better, a bicycle (really - that car is costing you way more than you imagine). This is the biggest thing you can do to get out of debt. If that is absolutely not possible (for example, your make money by actually driving car and you can't put all your equipment on bicycle), still sell you nice fuel-guzzler SUV and get cheap used car with main priority on low fuel usage and low registration expenses.
- Forget about traveling for pleasure vacation trips until all debt is completely solved and you have a nice stash of money put aside for it
- Drastically reduce you cell phone plans
- No new shoes or clothes, actually no shops for you at all except basic hygiene and food until you are completely out of debt and with some savings
- Make a dedicated shopping list for you absolutely require to avoid malnutrition, not based on "just a little more expensive" things that you like or would be nice, and then stick to it. Best if you go to shops only on dedicated days.
- Unless you already canceled your credit cards, absolutely pay them in full first thing when you get paycheck, and then don't use them unless you don't have any more ramen to eat and are in danger of starvation.
- make sure that put extra money each and every month (after you've cover all your expenses and liabilities in full, of course) in your savings account (so you never ever relax and get back to this situation).
There could be a lot more things to get you living on a level you can actually afford. Also, while your specific situation might (or might not) allow you to skip a thing or two on that list, only put it to consideration after you've made (and verified in practice!) your budget.
Here is example how you should address it, with numbers and everything.
answered 3 hours ago
Matija Nalis
1365
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
add a comment |Â
3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
24
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 23 hours ago
D Stanley
47.7k7143155
11
I think that every dollar I spend at this point is borrowed money.It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.
– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
add a comment |Â
up vote
24
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 23 hours ago
D Stanley
47.7k7143155
11
I think that every dollar I spend at this point is borrowed money.It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.
– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
add a comment |Â
up vote
24
down vote
up vote
24
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 23 hours ago
D Stanley
47.7k7143155
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 23 hours ago
D Stanley
47.7k7143155
answered 23 hours ago
D Stanley
47.7k7143155
answered 23 hours ago
D Stanley
47.7k7143155
answered 23 hours ago
D Stanley
47.7k7143155
47.7k7143155
11
I think that every dollar I spend at this point is borrowed money.It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.
– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
add a comment |Â
11
I think that every dollar I spend at this point is borrowed money.It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.
– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
11
11
I think that every dollar I spend at this point is borrowed money. It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.– Martin Carney
15 hours ago
I think that every dollar I spend at this point is borrowed money. It also helps to think of it in terms of "If I spend money on this now, this thing will end up costing me 2x or 3x as much." $15 for takeout is a lot less appealing when you realize it's really costing you $45.– Martin Carney
15 hours ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
I don't like this answer because it advocates rolling unsecured debt into a secured one. This is a typical suggestion made by collection agencies which do not have your best interest in mind.
– MonkeyZeus
3 mins ago
add a comment |Â
up vote
13
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 23 hours ago
Pete B.
46.9k1098148
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
add a comment |Â
up vote
13
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 23 hours ago
Pete B.
46.9k1098148
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
add a comment |Â
up vote
13
down vote
up vote
13
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 23 hours ago
Pete B.
46.9k1098148
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 23 hours ago
Pete B.
46.9k1098148
answered 23 hours ago
Pete B.
46.9k1098148
answered 23 hours ago
Pete B.
46.9k1098148
answered 23 hours ago
Pete B.
46.9k1098148
46.9k1098148
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
add a comment |Â
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
2
2
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
"you are probably best off getting a new mortgage" - the OP almost certainly has an underlying problem that they are spending more than they are earning. Until that is addressed, getting a new mortgage just means that they increase the likelihood of losing their house eventually.
– Martin Bonner
5 hours ago
add a comment |Â
up vote
3
down vote
Firstly, your Debt is not something you “work on†- It is a HUGE, FLAMING EMERGENCY!!!
The core of the problem seems to be that you are spending more than is sustainable for you. While re-mortgaging and such might at first glance seem to help, unless you drastically change your lifestyle, they will only make things even worse for you in the long run. Getting a second job can help, but only if you also change your lifestyle -- otherwise with more income you'll just start spending more and soon be in even worse situation.
What that means is you need to get out of consumerist mentality, and decrease your spendings a lot. This is some of the things you need to do:
- Take a detailed list of all your expenses (collect all receipts for cash purchases and work through you banking monthly statements line by line) and make a budget. Until you do, you have no idea where you really stand.
- Stop eating out and having fast food
- No Starbucks or evening pub visits too
- Cancel your cable TV
- Sell your car and use public transport, or even better, a bicycle (really - that car is costing you way more than you imagine). This is the biggest thing you can do to get out of debt. If that is absolutely not possible (for example, your make money by actually driving car and you can't put all your equipment on bicycle), still sell you nice fuel-guzzler SUV and get cheap used car with main priority on low fuel usage and low registration expenses.
- Forget about traveling for pleasure vacation trips until all debt is completely solved and you have a nice stash of money put aside for it
- Drastically reduce you cell phone plans
- No new shoes or clothes, actually no shops for you at all except basic hygiene and food until you are completely out of debt and with some savings
- Make a dedicated shopping list for you absolutely require to avoid malnutrition, not based on "just a little more expensive" things that you like or would be nice, and then stick to it. Best if you go to shops only on dedicated days.
- Unless you already canceled your credit cards, absolutely pay them in full first thing when you get paycheck, and then don't use them unless you don't have any more ramen to eat and are in danger of starvation.
- make sure that put extra money each and every month (after you've cover all your expenses and liabilities in full, of course) in your savings account (so you never ever relax and get back to this situation).
There could be a lot more things to get you living on a level you can actually afford. Also, while your specific situation might (or might not) allow you to skip a thing or two on that list, only put it to consideration after you've made (and verified in practice!) your budget.
Here is example how you should address it, with numbers and everything.
answered 3 hours ago
Matija Nalis
1365
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
add a comment |Â
up vote
3
down vote
Firstly, your Debt is not something you “work on†- It is a HUGE, FLAMING EMERGENCY!!!
The core of the problem seems to be that you are spending more than is sustainable for you. While re-mortgaging and such might at first glance seem to help, unless you drastically change your lifestyle, they will only make things even worse for you in the long run. Getting a second job can help, but only if you also change your lifestyle -- otherwise with more income you'll just start spending more and soon be in even worse situation.
What that means is you need to get out of consumerist mentality, and decrease your spendings a lot. This is some of the things you need to do:
- Take a detailed list of all your expenses (collect all receipts for cash purchases and work through you banking monthly statements line by line) and make a budget. Until you do, you have no idea where you really stand.
- Stop eating out and having fast food
- No Starbucks or evening pub visits too
- Cancel your cable TV
- Sell your car and use public transport, or even better, a bicycle (really - that car is costing you way more than you imagine). This is the biggest thing you can do to get out of debt. If that is absolutely not possible (for example, your make money by actually driving car and you can't put all your equipment on bicycle), still sell you nice fuel-guzzler SUV and get cheap used car with main priority on low fuel usage and low registration expenses.
- Forget about traveling for pleasure vacation trips until all debt is completely solved and you have a nice stash of money put aside for it
- Drastically reduce you cell phone plans
- No new shoes or clothes, actually no shops for you at all except basic hygiene and food until you are completely out of debt and with some savings
- Make a dedicated shopping list for you absolutely require to avoid malnutrition, not based on "just a little more expensive" things that you like or would be nice, and then stick to it. Best if you go to shops only on dedicated days.
- Unless you already canceled your credit cards, absolutely pay them in full first thing when you get paycheck, and then don't use them unless you don't have any more ramen to eat and are in danger of starvation.
- make sure that put extra money each and every month (after you've cover all your expenses and liabilities in full, of course) in your savings account (so you never ever relax and get back to this situation).
There could be a lot more things to get you living on a level you can actually afford. Also, while your specific situation might (or might not) allow you to skip a thing or two on that list, only put it to consideration after you've made (and verified in practice!) your budget.
Here is example how you should address it, with numbers and everything.
answered 3 hours ago
Matija Nalis
1365
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
add a comment |Â
up vote
3
down vote
up vote
3
down vote
Firstly, your Debt is not something you “work on†- It is a HUGE, FLAMING EMERGENCY!!!
The core of the problem seems to be that you are spending more than is sustainable for you. While re-mortgaging and such might at first glance seem to help, unless you drastically change your lifestyle, they will only make things even worse for you in the long run. Getting a second job can help, but only if you also change your lifestyle -- otherwise with more income you'll just start spending more and soon be in even worse situation.
What that means is you need to get out of consumerist mentality, and decrease your spendings a lot. This is some of the things you need to do:
- Take a detailed list of all your expenses (collect all receipts for cash purchases and work through you banking monthly statements line by line) and make a budget. Until you do, you have no idea where you really stand.
- Stop eating out and having fast food
- No Starbucks or evening pub visits too
- Cancel your cable TV
- Sell your car and use public transport, or even better, a bicycle (really - that car is costing you way more than you imagine). This is the biggest thing you can do to get out of debt. If that is absolutely not possible (for example, your make money by actually driving car and you can't put all your equipment on bicycle), still sell you nice fuel-guzzler SUV and get cheap used car with main priority on low fuel usage and low registration expenses.
- Forget about traveling for pleasure vacation trips until all debt is completely solved and you have a nice stash of money put aside for it
- Drastically reduce you cell phone plans
- No new shoes or clothes, actually no shops for you at all except basic hygiene and food until you are completely out of debt and with some savings
- Make a dedicated shopping list for you absolutely require to avoid malnutrition, not based on "just a little more expensive" things that you like or would be nice, and then stick to it. Best if you go to shops only on dedicated days.
- Unless you already canceled your credit cards, absolutely pay them in full first thing when you get paycheck, and then don't use them unless you don't have any more ramen to eat and are in danger of starvation.
- make sure that put extra money each and every month (after you've cover all your expenses and liabilities in full, of course) in your savings account (so you never ever relax and get back to this situation).
There could be a lot more things to get you living on a level you can actually afford. Also, while your specific situation might (or might not) allow you to skip a thing or two on that list, only put it to consideration after you've made (and verified in practice!) your budget.
Here is example how you should address it, with numbers and everything.
answered 3 hours ago
Matija Nalis
1365
Firstly, your Debt is not something you “work on†- It is a HUGE, FLAMING EMERGENCY!!!
The core of the problem seems to be that you are spending more than is sustainable for you. While re-mortgaging and such might at first glance seem to help, unless you drastically change your lifestyle, they will only make things even worse for you in the long run. Getting a second job can help, but only if you also change your lifestyle -- otherwise with more income you'll just start spending more and soon be in even worse situation.
What that means is you need to get out of consumerist mentality, and decrease your spendings a lot. This is some of the things you need to do:
- Take a detailed list of all your expenses (collect all receipts for cash purchases and work through you banking monthly statements line by line) and make a budget. Until you do, you have no idea where you really stand.
- Stop eating out and having fast food
- No Starbucks or evening pub visits too
- Cancel your cable TV
- Sell your car and use public transport, or even better, a bicycle (really - that car is costing you way more than you imagine). This is the biggest thing you can do to get out of debt. If that is absolutely not possible (for example, your make money by actually driving car and you can't put all your equipment on bicycle), still sell you nice fuel-guzzler SUV and get cheap used car with main priority on low fuel usage and low registration expenses.
- Forget about traveling for pleasure vacation trips until all debt is completely solved and you have a nice stash of money put aside for it
- Drastically reduce you cell phone plans
- No new shoes or clothes, actually no shops for you at all except basic hygiene and food until you are completely out of debt and with some savings
- Make a dedicated shopping list for you absolutely require to avoid malnutrition, not based on "just a little more expensive" things that you like or would be nice, and then stick to it. Best if you go to shops only on dedicated days.
- Unless you already canceled your credit cards, absolutely pay them in full first thing when you get paycheck, and then don't use them unless you don't have any more ramen to eat and are in danger of starvation.
- make sure that put extra money each and every month (after you've cover all your expenses and liabilities in full, of course) in your savings account (so you never ever relax and get back to this situation).
There could be a lot more things to get you living on a level you can actually afford. Also, while your specific situation might (or might not) allow you to skip a thing or two on that list, only put it to consideration after you've made (and verified in practice!) your budget.
Here is example how you should address it, with numbers and everything.
answered 3 hours ago
Matija Nalis
1365
edited 3 hours ago
answered 3 hours ago
Matija Nalis
1365
answered 3 hours ago
Matija Nalis
1365
answered 3 hours ago
Matija Nalis
1365
1365
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
add a comment |Â
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
That's a weird example. It's titled "minimum wage with a baby on the way", but then describes people with an income of $2980/month.
– gerrit
3 hours ago
1
1
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
@gerrit they did get payed $7.35/hr and $8.50/hr, which does look like minimum wage to me. Note that they also decided to rent two bedrooms in the house for extra $1000 - something the Debt-ridden Dude might also consider doing if the money is tight. There are other examples there too if you are interested, as well as lots of other advices for financial independence...
– Matija Nalis
2 hours ago
2
2
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
Right, 2 × minimum wage + rental income is a lot more comfortable than supporting a family on a single minimum wage with no other sources of income.
– gerrit
1 hour ago
add a comment |Â
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6
Can you rephrase "my line of credit owing" and perhaps the title of the question? I'm not sure if you are trying to say the amount of credit you have available keeps getting increased, or if your original credit limit was higher than your mortgage to begin with and you keep increasing your utililization.
– Michael
15 hours ago
1
Possible duplicate of How can I get out of the debt-trap as quickly as possible?
– Philipp
5 hours ago
"What would be the best way to consolidate those two?" Without more details, probably nobody can give useful answers beyond general guidelines. I think this question could be more specific to be really useful to the questioner or others.
– Trilarion
2 hours ago
Check out consolidatedcredit.org/credit-card-debt/debt-relief for some ideas. They advise good ideas and help you to stay away from bad ideas. One bad idea in particular is to intertwine your credit card debt with your house; contrary to the current highest upvoted answer. Being pro-active and understanding all of your choices before making a decision is the best way to position yourself for success.
– MonkeyZeus
7 mins ago