Foreclosure help
 

Option #6: Borrow on Credit cards or some other type of loan

Consider credit card rates these days. Sure, they all have introductory periods of something like 2%. but eventually, especially with these large sums of money, like parts of your mortgage loan, you’ll be paying 15-24 percent on it before you know it! Even if you have mastered the ‘art’ of moving your credit card balance from one card to another every few months to avoid paying interest charges, it becomes very difficult to keep it up before long and you can wind up missing a lot of sleep worrying about what happens if the next card turns you down. (Ah-ha, didn’t think of that yet, did you?) Simply put, it is not worth it, the rate is just way too high.

Neither is paying some horrible rate for a 2nd or 3rd mortgage loan… Not only do they have a comparable rate to credit cards, but they’re secured by your house, just like the first mortgage!

You’ve got to think of your future and see how devastating the financial effects of these decisions are that you are making now. They quite literally mean the difference between retirement at age 80 in an uncomfortable, cheap retirement home, or retiring wealthy, years earlier, like you always planned to do.

Pros:

Credit cards can offer neat ways to let you ‘surf’ your debt from one card to another, until one finally says “no.” –Then it’s bankruptcy time. So if you’ve decided on bankruptcy anyway, and you’re credit was good enough to get these cards before…

Cons: 

Outrageously high rates will eventually get you. You can’t avoid it. Sure, you may win the lottery someday and be able to pay them off eventually, but they’ve designed it so the interest will grow to a point where it won’t bee too long before your minimum payment will be too large, and you will have to file bankruptcy.

Naturally, this does nothing to help your credit report, the Notice of Default and anything else you’ve gathered on it to date stays put here as well.

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