Comments on: Never Pay Credit Cards Before Mortgage http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/ Promotional Codes, Coupons & Deals + Money Saving Insights Thu, 24 May 2012 01:21:20 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: tracy http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-80718 tracy Thu, 23 Feb 2012 06:14:38 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-80718 how did you solve the problem? how did you solve the problem?

]]> By: The Mad Hungarian http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43896 The Mad Hungarian Tue, 03 Aug 2010 05:58:14 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43896 On the subject of deferring payment of credit cards when necessary: You're not necessarily being immoral or anything by doing this. It's just a business deal, where the lender is charging you a very high interest rate on that money in exchange for their assuming the risk of not being repaid as agreed. You've already paid through the nose for them to assume that risk. If they want to throw that risk back on the borrower now, then they can also refund those high risk-based interest rates they charged the borrower. That's fair dealings, is it not? On the subject of deferring payment of credit cards when necessary: You’re not necessarily being immoral or anything by doing this. It’s just a business deal, where the lender is charging you a very high interest rate on that money in exchange for their assuming the risk of not being repaid as agreed. You’ve already paid through the nose for them to assume that risk. If they want to throw that risk back on the borrower now, then they can also refund those high risk-based interest rates they charged the borrower. That’s fair dealings, is it not?

]]> By: Steve http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43890 Steve Mon, 02 Aug 2010 23:31:12 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43890 I'll be 3 months in default on the house in a week or so (didn't pay June, July or August). I did, however, manage to get all my credit cards and business debt paid off by penny pinching and selling off my valuables, so now I am debt-free except for the house, I have a little money in savings, and have almost no monthly expenses. I get calls pretty often from the bank regarding the mortgage, but I tell them the same thing each time "I don't know when I'll make a payment, it just doesn't make sense." I'm just waiting now until they kick me out; it could be 6 months, could be a year, could be longer, I don't know. Either way, I plan to rent an apt. for a few years and save up a nice nest egg once the eviction people come knocking. I've been in debt as long as I can remember, between credit cards, car loans and a small business; I'm done making the banks rich. They screwed up the entire system by giving loans to people who had no business owning a home, and then selling the loans to wall street a creating a recession. People like myself, who could afford a home, now have to suffer because the market was so inflated, plus we got to bail out the banks as taxpayers. Well, I tell you what Citibank, here's your stupid house back, you screwed up, and now, I don't owe you $100k anymore... I’ll be 3 months in default on the house in a week or so (didn’t pay June, July or August). I did, however, manage to get all my credit cards and business debt paid off by penny pinching and selling off my valuables, so now I am debt-free except for the house, I have a little money in savings, and have almost no monthly expenses. I get calls pretty often from the bank regarding the mortgage, but I tell them the same thing each time “I don’t know when I’ll make a payment, it just doesn’t make sense.” I’m just waiting now until they kick me out; it could be 6 months, could be a year, could be longer, I don’t know. Either way, I plan to rent an apt. for a few years and save up a nice nest egg once the eviction people come knocking. I’ve been in debt as long as I can remember, between credit cards, car loans and a small business; I’m done making the banks rich. They screwed up the entire system by giving loans to people who had no business owning a home, and then selling the loans to wall street a creating a recession. People like myself, who could afford a home, now have to suffer because the market was so inflated, plus we got to bail out the banks as taxpayers. Well, I tell you what Citibank, here’s your stupid house back, you screwed up, and now, I don’t owe you $100k anymore…

]]> By: James http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43853 James Mon, 02 Aug 2010 06:12:31 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-43853 Steve - I'm in a very similiar situation in California. Would love to hear which path you decided to go down and how it has been working out. Best of luck to you. Steve – I’m in a very similiar situation in California. Would love to hear which path you decided to go down and how it has been working out.

Best of luck to you.

]]> By: Bart http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-42599 Bart Wed, 16 Jun 2010 19:46:23 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-42599 Seek for online professional advice for your <a href="http://www.debt-concern.com/" rel="nofollow">debt concerns</a>. They come for free or sometimes cheaper. They give out the best advice and what's good for you. Seek for online professional advice for your debt concerns. They come for free or sometimes cheaper. They give out the best advice and what’s good for you.

]]> By: George http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-39132 George Thu, 18 Mar 2010 03:50:29 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-39132 Hi, I like others went through a very tough finacial year. He was without work for 7 months and we have been working on a get out of debt so we can retire plan and when he lost his job the payment were just too high, something had to give. So after alot of reading I stopped paying credit cards and caught up my mortagage, car and line of credit. Now we are back where we belong and want to relocate to Florida and buy a home. We have 60,000 to make down payment on the home of 150,000. Will anyone lend us money or do we have to fix paying off card and up or credit first. Never had a 30 day late payment and I'm 50 until this year? Hi, I like others went through a very tough finacial year. He was without work for 7 months and we have been working on a get out of debt so we can retire plan and when he lost his job the payment were just too high, something had to give. So after alot of reading I stopped paying credit cards and caught up my mortagage, car and line of credit. Now we are back where we belong and want to relocate to Florida and buy a home. We have 60,000 to make down payment on the home of 150,000. Will anyone lend us money or do we have to fix paying off card and up or credit first. Never had a 30 day late payment and I’m 50 until this year?

]]> By: We Owe $80,000 On Credit Cards – Where To Start? | Frugal Dad http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-37483 We Owe $80,000 On Credit Cards – Where To Start? | Frugal Dad Fri, 05 Feb 2010 09:02:00 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-37483 [...] up, and for making that a top priority. So many times people in your situation make payments to credit cards before the mortgage payment because some obnoxious credit card collector is breathing down their neck. Prioritize the income [...] [...] up, and for making that a top priority. So many times people in your situation make payments to credit cards before the mortgage payment because some obnoxious credit card collector is breathing down their neck. Prioritize the income [...]

]]> By: Steve http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-37367 Steve Wed, 03 Feb 2010 18:55:03 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-37367 There is an exception to the rule that you should always pay your mortgage first. This also happens to be the situation I'm currently in. I am about $100k upside on a house due to the market, NOT taking a HELOC or 2nd, and I also have about $60k in credit card debt due to a failed business (that was breaking even for 6 years until the economy tanked). I don't really care if I lose the house because I could rent a nicer house in a better neighborhood for about $1000/month less than I am paying on the mortgage (which is just a 30 year fixed at 5.625, not a bad loan, the house is just not worth what I paid unfortunately). I am employed (and will hopefuly remain that way) so I make too much to qualify for bankrupcy, but my lawyer did advise that I could just stop paying the house, and pay off the cards. The logic being that unlike the credit cards, who can sue me and garnigh my wages, the mortgage company can just forclose on the house and that's then end of it. Also, given how long it would take for the forclosure to go through, I could likely live for free for probably a year or more, allowing me to pay off the cards much more quickly. Is anyone else in this situation or care to comment? There is an exception to the rule that you should always pay your mortgage first. This also happens to be the situation I’m currently in. I am about $100k upside on a house due to the market, NOT taking a HELOC or 2nd, and I also have about $60k in credit card debt due to a failed business (that was breaking even for 6 years until the economy tanked). I don’t really care if I lose the house because I could rent a nicer house in a better neighborhood for about $1000/month less than I am paying on the mortgage (which is just a 30 year fixed at 5.625, not a bad loan, the house is just not worth what I paid unfortunately). I am employed (and will hopefuly remain that way) so I make too much to qualify for bankrupcy, but my lawyer did advise that I could just stop paying the house, and pay off the cards. The logic being that unlike the credit cards, who can sue me and garnigh my wages, the mortgage company can just forclose on the house and that’s then end of it. Also, given how long it would take for the forclosure to go through, I could likely live for free for probably a year or more, allowing me to pay off the cards much more quickly. Is anyone else in this situation or care to comment?

]]> By: James http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-36586 James Wed, 20 Jan 2010 04:45:58 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-36586 Sara, I'm no expert on finance. However, the initial visit with a lawyer is usually free (consultation/talk about the options and how to pay). It was helpful to me and I never did end up using the services. I'm not necessarily saying you should use their services but maybe set up three different consult appts (three different firms) as a starting point, keeping in mind they are trying to ultimately make a profit. JMA Sara, I’m no expert on finance. However, the initial visit with a lawyer is usually free (consultation/talk about the options and how to pay). It was helpful to me and I never did end up using the services. I’m not necessarily saying you should use their services but maybe set up three different consult appts (three different firms) as a starting point, keeping in mind they are trying to ultimately make a profit. JMA

]]> By: Sara http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-36530 Sara Mon, 18 Jan 2010 17:44:24 +0000 http://frugaldad.com/2008/08/20/why-you-should-never-put-credit-cards-before-the-mortgage-payment/#comment-36530 I am a college student. I am in my final year and I graduate in December. I have had to pay for everything all on my own. There is no family to help me. I had a great job as a nanny, but could not keep it this year because of classes. I had to have the classes and they were only being offered at certain times. I have found another job but it doesn't pay very much. I can no longer afford the interest on a school loan I took with Bank of America my sophmore year. It's only $50 a month but I have no disposable income. It all goes to the other bills which have to be paid. I have no credit card bills, thank God. Today I got a summons from the Bank of America loan. I have no assets. I own nothing. Wage garnishment is not allowed in South Carolina (where I live). I am wondering if there is anything they can do to me? I know it has destroyed my credit. What is the absolute worst that can happen as a result of this going to court? I really need some advice but I can't afford to talk to a lawyer. I am a college student. I am in my final year and I graduate in December. I have had to pay for everything all on my own. There is no family to help me. I had a great job as a nanny, but could not keep it this year because of classes. I had to have the classes and they were only being offered at certain times. I have found another job but it doesn’t pay very much. I can no longer afford the interest on a school loan I took with Bank of America my sophmore year. It’s only $50 a month but I have no disposable income. It all goes to the other bills which have to be paid. I have no credit card bills, thank God.
Today I got a summons from the Bank of America loan. I have no assets. I own nothing. Wage garnishment is not allowed in South Carolina (where I live).
I am wondering if there is anything they can do to me? I know it has destroyed my credit. What is the absolute worst that can happen as a result of this going to court? I really need some advice but I can’t afford to talk to a lawyer.

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