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Creepy high amount of credit card debt.

Super Contributor

Re: Creepy high amount of credit card debt.


tcbofade wrote:

Good thoughts all, thanks for your input.

 

No, I'm not offended, and we're not having a lifestyle issue.

 

We didn't overbuild our neighborhood, we bought a nearly 20 year old house that had fallen into disrepair, most homes in our subdivision sell for 200-300k.  We bought for $115k.

 

We researched the price history on our home, it's been valued over $300k before, and our insurance agent wouldn't insure it for less than $200k.

 

We'll get another appraisal in January, and we'll see what they say then.... 


Just means you'll pay more taxes Smiley Tongue

EX FICO  16 INQ  791
EQ FICO  10 INQ  786
TU FICO  12 INQ  790
Total CL$477,00038 TL
Frequent Contributor

Re: Creepy high amount of credit card debt.

Using the intro 0 APR rate on cards looks pretty good when comparing against the rates card normally charge.

When compared against the current rates for mortgages, it looks less advantageous.

Every situation is different, so the upside/downside is individual.

I personally am not a fan of riding balances on cards unless the repayment money is in hand at the

time of the charge. Murphy's law too often comes into play. "In hand" in this case would be a written commitment

for a second mortgage or Refi at explicit terms. Without knowing the future availability & terms of

financing, it's taking a gamble for a few months of "0" APR vs ~4% current mortgage rates. The potential

downside include rates rising in the interim, housing values falling or inability to refinance.  Not to be a party pooper,

but a lot of undercapitalized "house flippers" got burned pretty bad during the 2008 housing meltdown doing this

exact thing. That is the slight but catastrophic risk you have to assess to make this gamble. Which side of the bet

a person takes is an individual choice. 

 

Congrats on the successful purchase and remodel. It sounds like a very good move. If you have the time, please

post the particulars when you complete the refi. I am interested in the actual upside/downside of the money

end.

 

 

 

 

Senior Contributor

Re: Creepy high amount of credit card debt.


bada_bing wrote:

Using the intro 0 APR rate on cards looks pretty good when comparing against the rates card normally charge.

When compared against the current rates for mortgages, it looks less advantageous.

Every situation is different, so the upside/downside is individual.

I personally am not a fan of riding balances on cards unless the repayment money is in hand at the

time of the charge. Murphy's law too often comes into play. "In hand" in this case would be a written commitment

for a second mortgage or Refi at explicit terms. Without knowing the future availability & terms of

financing, it's taking a gamble for a few months of "0" APR vs ~4% current mortgage rates. The potential

downside include rates rising in the interim, housing values falling or inability to refinance.  Not to be a party pooper,

but a lot of undercapitalized "house flippers" got burned pretty bad during the 2008 housing meltdown doing this

exact thing. That is the slight but catastrophic risk you have to assess to make this gamble. Which side of the bet

a person takes is an individual choice. 

 

Congrats on the successful purchase and remodel. It sounds like a very good move. If you have the time, please

post the particulars when you complete the refi. I am interested in the actual upside/downside of the money

end.

 

 

 

 


I'll be yelling so loud, you'll know the details before you open your browser....lol.

 

Will do. 

 

Is it January yet?

Zero percent financing is where the devil lives...

10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
Super Contributor

Re: Creepy high amount of credit card debt.


tcbofade wrote:

bada_bing wrote:

Using the intro 0 APR rate on cards looks pretty good when comparing against the rates card normally charge.

When compared against the current rates for mortgages, it looks less advantageous.

Every situation is different, so the upside/downside is individual.

I personally am not a fan of riding balances on cards unless the repayment money is in hand at the

time of the charge. Murphy's law too often comes into play. "In hand" in this case would be a written commitment

for a second mortgage or Refi at explicit terms. Without knowing the future availability & terms of

financing, it's taking a gamble for a few months of "0" APR vs ~4% current mortgage rates. The potential

downside include rates rising in the interim, housing values falling or inability to refinance.  Not to be a party pooper,

but a lot of undercapitalized "house flippers" got burned pretty bad during the 2008 housing meltdown doing this

exact thing. That is the slight but catastrophic risk you have to assess to make this gamble. Which side of the bet

a person takes is an individual choice. 

 

Congrats on the successful purchase and remodel. It sounds like a very good move. If you have the time, please

post the particulars when you complete the refi. I am interested in the actual upside/downside of the money

end.

 

 

 

 


I'll be yelling so loud, you'll know the details before you open your browser....lol.

 

Will do. 

 

Is it January yet?


It is if you'll tell us.

EX FICO  16 INQ  791
EQ FICO  10 INQ  786
TU FICO  12 INQ  790
Total CL$477,00038 TL
Senior Contributor

Re: Creepy high amount of credit card debt.

Hey, I'm game.....now we just have to convince somebody at the Credit Union that it's January....  Smiley Tongue

Zero percent financing is where the devil lives...

10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
Super Contributor

Re: Creepy high amount of credit card debt.


tcbofade wrote:

Hey, I'm game.....now we just have to convince somebody at the Credit Union that it's January....  Smiley Tongue


Shouldn't be that hard to do Smiley Happy

EX FICO  16 INQ  791
EQ FICO  10 INQ  786
TU FICO  12 INQ  790
Total CL$477,00038 TL
Regular Contributor

Re: Creepy high amount of credit card debt.

Thanks for sharing. This is a bit of a gamble so to speak as many have stated. However, if all the chips fall in your favor you'll have a great home and will have improved your credit profile through the process.

Quicksilver x2 | Barclays | Store Cards (more than I need)

Scores: 650s
Senior Contributor

Re: Creepy high amount of credit card debt.

...and NOW it's January.

 

DW got approved for the refi today.  They haven't ordered the appraisal yet, but the loan officer believes that $200k is a modest "assumed" value...  First round should knock out about $50k in CC debt.

 

We want to stay under 80% LTV so that we can ditch PMI....

Zero percent financing is where the devil lives...

10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
Community Leader
Super Contributor

Re: Creepy high amount of credit card debt.

Best of luck on the apprisal!  Keep us informed.

Chase | Citibank | Amex | BofA | PenFed | NFCU | Discover | Barclay's| US Bank | Fifth Third Bank | FNBO
Valued Contributor

Re: Creepy high amount of credit card debt.

Good luck with everything 

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