The average US home owner has over $10,000 in unsecured credit card debt! Most credit cards also carry interest rates in the mid to high teens and have high minimum payments. Not only is this unsecured credit card debt not tax deductible but in most cases it is a financial burden on most homeowners.
Once you consolidate credit card debt, it is a good idea to get in the habit of using a debit card. This will help you avoid running up credit card debt again.
It will take the average person with $10,000 in credit card debt 30 years to pay off. Consolidate this debt into your mortgage so you have the tax-deduction at the end of the year.
A Mortgage professional can easily determine if rolling any high interest credit card debt into your home financial plan will be beneficial in achieving your financial goals.
Consolidating Credit Card Debt with a home loan is a great idea to lower the interest rate on the debt. However, borrowers must take great care not to run up the credit card debt again which will put them in the same position as before.
To Consolidate Credit Card Debt with a home mortgage, you will generally be refinancing your property and taking cash out to pay off the debts.
You can also obtain a Home Equity Line of Credit or a second mortgage in order to consolidate your credit card debt. These two options both offer tax benefits and can lower the interest rates that you are paying on the credit cards to a lower interest rate on a home equity line or second mortgage. Most times the rates on an equity line or 2nd mortgage will be lower because these are both secured by your home, whereas a credit card debt is not secured by anything.