Reply to Well that's it, walking away from debt

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]With regard to your credit card debt, that is killer.  You have a mortgage loan so you could get a home equity loan to pay off that cc debt.  That's the main thing-getting rid of your cc debt.  And see if you qualify to refinance even though you're under water.  There are programs for that, check into it to see if you qualify.

http://www.bankrate.com/finance/refinance/refinance-options-when-you-re-underwater-1.aspx

It doesn't sound to me like you've done all your due diligence before considering bankruptcy.  That should be your last option.  It will impact your credit score and your spouse's for 6-7 years.  That's a long time and will cause you to have to pay more to borrow money.  Not a great long term option in my view if there's a way to avoid it.[/quote]

Don't you need equity in your home to get a home equity loan?[/quote]

Never get a home equity loan to pay off credit card debt. The reasons are multifold:
[b]
1) You're trading unsecured debt for secured debt. Don't put your house at risk, especially if you might run up those CCs again.[/b]
2) Cost you closing costs, etc. to get a Home Equity Loan. Run you near $1,000.
3) The interest on the home equity line isn't tax-deductible if your pay off CC with it.

[/quote]

Agree - DO NOT CONVERT UNSECURED DEBT TO DEBT SECURED BY YOUR HOME[/quote]

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