Debt consolidation advice?

Koz_2

My mortgage is 64977 @ 4.99%
My loan is 10401 @ 9.75%
My line of credit is at 5270 @ 9.5%

My question is: do I consolidate all and make my mortgage go up to 80000. That is the max they will give me. They will give me $13663 (which is 15000 - fees) and I can use that money to pay down the majority of my remaining loans.

Currently I pay $315/month on the loan and I pay $500-700/month on the LOC. I pay 297.77 biweekly on the mortgage with 10 years, 11 months left. If I consolidate my mortgage would go to 16 years but by raising my payments by just $100 I will go back down to 10 years.

Should I do it? It seems too good to be true and I feel like I'm missing something.

oliveoyl

in the long run you will be paying more. an extra 100 on your bi-weekly payment for 10 years = 26,000

Koz_2

Yes I'd be adding $100 to my mortgage payment, but i wouldn't have to pay the $315/mlonth for my loan, or $500-700 for my LOC because they would be taken care of.

hypno06

Most people here will advise to stay well away from consolidation unless you are absolutely sure that you will not be re-spending on your credit cards etc again.

For many, consolidation has simply meant extra debt, and that within 12 months their cards are maxed out again just compounding the problem.

The underlying reasons for spending need to be addressed, as well as the ability to repay, and remember that you are putting your house further at risk if you are unable to meet the payments as it will be secured.

Have a look at the snowball calculator before making a decision - this will show you another alternative by putting your loan and credit card details with their aprs in a apreadsheet and allowing you to play around with repayment amounts to get things paid off quicker. You may be surprised!

https://www.whatsthecost.com

good luck x

Browntoa

oh look someones SPAM referral (USA) credit card /loan web site

immoral_angeluk

Spam reported.