@Anonymous wrote:
The HE would be 6.99% or lower depending on the Credit Union and we will use my husband's credit first since his is so much better. The Discover card rate is 15.99% and I am totally embarrased to say the balance is $14,000.
Don't feel so bad. I've had higher balances than this unfortunately.
You'll get different opinions about whether it's ever a good idea to trade unsecured debt for secured debt, If you do the refi and add more to your HE balance and if heaven forbid something really bad happens you are in danger of losing your home whereas with CC debt you won't face this. Plus if you pay off the Discover you must have the self discipline to not run the balance back up because then you'll be worse off than before. You'll have the HE loan plus the new CC debt.
I'm leaning towards one thing that llecs mentioned and that is using every extra dollar you can find towards paying down the balance on this Discover. While you are doing this DO NOT use it or any other card for any new purchases except a tiny amount every few months to keep them active.
15.99% is pretty high but not outrageous compared to many rates. You might have to cut back on your expenses for awhile. Don't eat out as much, perhaps no vacations for a year or so. Can you sell any items and use that towards the debt? Use any bonuses or tax refunds for debt pay down. Is it possible to get a part time job? Realize that short term sacrifice will mean long term security.
These are just one man's opinion and take that for what's it's worth. This is what I would probably do but only you know all the specifics of your situation. If others give you their thoughts and suggestions take everything in and then decide what you think will work best for you.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
