Financial Predicament..............Help!?
My wife and I have about $15,000 in credit card debt.
We are wanting to buy a house that is about 25% monthly of our gross income, so we feel we can afford it.
However, with our credit card debt, we are paying about $350/month which pushes us into a tighter situation.
I feel that it will take us years to try to pay off this debt. I don't want to rent for years.
So I am in situation. Buy and hope we make it. Or rent for the rest of my natural born life.
If we buy a house, and for some reason had to declare bankruptcy 4 or 5 years in, could we keep the house do you think?
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A possible solution would be to look for a house that is priced well below its appraised value and borrow against that instant equity to pay off your debt. Some experts say paying off credit card debt with a home equity loan is not a smart decision, but I think you might see a drastic reduction in your payments from a much lower interest rate on the HE loan.
1. yu need tu pae off the kredit kard a lot faster than that.
If KK interest=15%, it take 62 months (5 yr 2 mon) tu pae it off
assuming yu dont charj 1 penee over next 5 yeers. At 18% it
take 70 months..
2. Then yu gotta save up munee for down paement+fees+taxes+deposits+eskroe+...
3. Yu get 3 months behind on morgage paements, bank start the paperwerk tu forkloes. The proses is long & konvulated & mae take yeers, but eventually bank take bak the hous.
Bankrupt wont chaenj this.
4. Yu gotta save seereeus munee over 3-5 yeers tu bi a hous.