To loan or not to loan?

[Vanquisher]

I don't know all the particulars yet, but we are considering doing a Home Equity Loan or a refinance. I don't know what we will qualify for yet. We are drowning in credit card debt and are going to use the money to pay that off. I promis, promise, promise that I will cut up the credit cards and use them no more. I need to dig out from this hole.

Any thoughts?

I have tried all of the traditional lower my credit card rate stuff, and it isn't working. The minimum payments are still too high.

So, would you continue to drown in your minimum payments and hope that no emergencies come along, or try the home loan?

I think we have a better chance of qualifying for the refinancing.

I need a financial advisor for poor people. And, this is where you all come in.

[DCJenn]

Go for the refi- you can deduct the interest you're paying from your taxes so it becomes a double-sided bonus.

Jenn

[SuzySunshine]

I agree, if you can get a good interest rate you can deduct the interest and it works out better. Just make sure your rate isn't variable since they're all over the place right now.

refi...plus, for the first month you don't have to pay the mortgage.

I agree -- give it a try! Good point too from Cheri about the adjustable rate. I forget, how much longer is your DH's residency? Maybe a 5 yr ARM could work.