Do a refinance to pay off credit card debt , is it worth it? We will see! Credit cards are an easy, quick and convenient way to pay for our purchases when we do not necessarily need living money for that. Although it is a great credit tool, the cards are high interest earners, if for one reason or another you can not pay the total or the minimum monthly invoice payments, then things will start to get bad.
Fortunately there are several ways for a debt to be paid, one of them is using the “refinancing” – But, Carla what kind of refinancing, refinancing the debts on the card ? No, the “refinancing of assets”, as crazy as it seems to be, some people refinance their goods for credit card payment. An internet user sent a message to me asking me to give him a tip to pay a debt of R $ 65,740 from the card, he asked me if it would be a good thing for him to ” refinance his house to pay the card ” and to keep a few changes. I’m no expert on the subject, but come on.
In theory, the idea is good, but in practice not so much? If you have a home or a car cleared, certainly in a bank or financial you will be able to do the refinancing as well as a way to pay off your debts on the credit card . With every financial operation, there are advantages and many disadvantages, each case needs an evaluation of a professional to know the actual financial situation of the person, only so it is possible to consider the pros and cons before going forward in the decision.
With “refinancing to pay off credit card debt, ” it will at first offer one more breath to breathe for some time. The operation will reduce the interest you would be paying on the card, since secured loans rates are lower compared to the credit card. In refinancing, the contractor may request a term of up to 60/72 installments, reducing the value of installments dramatically. You get rid of an expensive debt and trade for a cheaper one. By paying full debt you still continue to use the card.
Refinancing your home or your automobile to pay off debts , you are actually contracting other debt, only cheaper, longer and, unlike credit card debt, refinancing your home given as collateral will bring other burdens. If you fail to pay the debts on the credit card , you will be under credit restriction but your name can be recovered. On the other hand, if you do not meet refinance refinance payments, your home or car can be taken from you, and with no chance to get it back.
Asking for the card lock is the first step, call the lender for a renegotiation of the card’s debt , the second step. The third is the most fundamental level of this story, changing the financial habits that brought credit card debt. Refinancing assets to pay off debts is not one of the best solutions, it would be like swapping a rope for a chain and asking to be tied.
I need money to pay off debts , what do I do?
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Always evaluating the advantages and disadvantages of a financial transaction in the light of your economic situation before completing any business is still the smartest way to handle the difficulties.
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