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Thread ID: 104131 2009-10-17 19:10:00 Putting credit card bills on the house ? Digby (677) PC World Chat
Post ID Timestamp Content User
821536 2009-10-17 19:10:00 Hi Guys,

I have some close relatives who have a fairly high mortage on their house, and some car hps and a 10K credit card bill.

They are talking about re-financing the whole lot on the house.

Do you think this is a good idea. I know the interest will be lower, but I just wonder that they will be getting nowhere, and will probably be in the same position in a few years time unless they are very disciplined and pay more off their mortgae than they are now, and don't get any more hps or credit card bills.

What do you think ?
Digby (677)
821537 2009-10-17 19:52:00 i'd sort of the short term stuff first ie the credit card/hp. GameJunkie (72)
821538 2009-10-17 20:01:00 My philosophy is, if you ain't got the cash don't buy it.
:)
Trev (427)
821539 2009-10-17 20:14:00 Their idea is good as long as they burn the credit card and pay cash from then on.

What Trev says is correct. SWMBO and I both have credit cards but in 20 or so years we have had them we have always paid in full on the due date. If we have been in a position where we didn't think we could do tha, we have not used them.

Ken
kenj (9738)
821540 2009-10-17 20:39:00 If they are struggling to pay off the credit card then sure thing, they are already in the hole so they have to operate from that perspective.

If they are just looking to clear the card so they can spend another 10 grand, then...well, I wouldn't do it but its their money.
Metla (12)
821541 2009-10-17 20:45:00 Ken is near the truth.

Take note.
I suspect though,that to get in that position,they must be rabid spenders and as such,hard to rein in.
Cicero (40)
821542 2009-10-17 20:53:00 Metla's post hits the nail on the head - I have seen people with large Credit card bills, HP's etc put them on the mortage, and a few months down the track, the Credit card is up again, more HP's and in worse state than before.

If you want to put something on HP, make sure its on deferred payments, and interest free - AND pay it of before its due to start.

We do that with a few things from Harvey Norman, so far each and every time its paid off before the start date, and cost us the same as if we had paid cash.
wainuitech (129)
821543 2009-10-17 21:08:00 I love my credit card, well, I did when I had a good pay coming in and my overtime was giving me a couple hundred dollars spending money each week.

Now its kind of got me screwed.

Still, At least I can buy stuff on a whim, get it dirty, and then sell it on trademe for half of the purchase price, and then put the money from the sale on the credit card.

Pure genius.
Metla (12)
821544 2009-10-17 21:56:00 "They are talking about re-financing the whole lot on the house.
What do you think ?"
I agree with Trev & Ken “if you ain't got the cash don't buy it.” But those who have gone through wartime and depressions are more security conscious when it comes to finances.
Tell your friends to get opinions from their relations: the ones that they will try to move in with after the mortgagee sale!
coldot (6847)
821545 2009-10-17 22:04:00 Yes I get surprised looks from sales people when I buy a big ticket item and they ask how I want to pay for it and I say cash, after they have just got the HP forms out.
:)
Trev (427)
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