I own home outright i have two loans two credit cards and three electrical items im paying for monthly for a family member all together total debt is £10,000 can i gain eqity to pay off these debts from my property if ive no mortgage left to pay
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woodsy4474
ANSWERS: 3
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There is nothing wrong in having credit cards...as long as you can control the debt level. And if you own your home freehold, then to borrow money you would have to use it as collateral to the lending institutuion or bank. but by doing this, you are making yourself a slave of that institution. The Bible has a simplistic solution (Proverbs 22:7) The rich is the one that rules over those of little means, and the borrower is servant to the man doing the lending.
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With mortgage interest rates currently falling, and credit card interest rates NOT; it's exactly what i'm about to do over the next week or so - move the NZ$10,500 I owe on credit card, to my mortgage. I've done all the sums and for me, this is going to work, while freeing up $2-300 month which we need right now.
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You can take out a home equity loan since your house is paid for. Just be careful about how much you borrow, and read the contract carefully. Be sure you know what you're getting into and the interest is at a better rate than the other debts. It would actually be a good idea. It would also probably be a good ide to only have one dredit card, and to negotiate with that company for a lower interest. you should have good credit based on your circumstances. Just use it only for when absolutely necessary, otherwise you will end up back in the same position.
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