I have been helping people abused by the credit card companies for the last 3 years, and people ask me all the time if it is a good idea to take out a mortgage to pay off the credit cards. My answer is be careful if you do, because it might not be your best choice to get rid of the credit cards by taking out a 2nd or 3rd mortgage.
I can’t tell you how many people call me and say they took out a mortgage to pay off the credit cards, and now they can’t make the mortgage payments. I tell them we can’t help you because you took unsecured debt and rolled it into your home, which is secured debt. You can also get the best service of credit without income online (also known as kredit ohne einkommen in German language)
There is a major difference between secured debt & unsecured debt.
Secured debt is your real estate, automobile, or other physical things that you finance. Unsecured debt is credit cards, personal or signature loans or lines of credit.
If you miss a couple secured loan payments, they just take the home or car. With a charge card, they can’t take back the movie and popcorn you charged 2 weeks ago.
So if you take out a mortgage to pay off our charge card debt, and you got hurt or lost your job, and you missed some payments, you could loose your home! If you didn’t put the debt on your home, they can’t take your home. Worst thing is they might try to put a lien, though that requires a court appearance, however, we have secret techniques we use to get a summons to appear dismissed using their own tactics.
Another important thing to consider is that unless you change your spending habits & cut up the cards, I guarantee you will charge them to the limit in a year or 2; then you have the mortgage and the card payments and you will have two payments you can’t make. Unfortunately, those are the people who call me when it’s too late for us to help them.