Problems with bank of america credit card

[TinyGiant]

I hope to pay all my cards off in the next year (in 8-9 months if things go as planned) (starting in jan) have about $7k in credit card debt right now.

it'll be nice to be out from under that. then next will be hammering down the yaris.. then we'll just have the house to deal with :) (we bought a house december 10 2007, foreclosure , hoping the housing market rallies and we'll be sitting on a goldmine :) ) if it does i might just refi the car into the house .. that would be ideal

[Shroomster]

Originally Posted by TinyGiant

I hope to pay all my cards off in the next year (in 8-9 months if things go as planned) (starting in jan) have about $7k in credit card debt right now.

it'll be nice to be out from under that. then next will be hammering down the yaris.. then we'll just have the house to deal with :) (we bought a house december 10 2007, foreclosure , hoping the housing market rallies and we'll be sitting on a goldmine :) ) if it does i might just refi the car into the house .. that would be ideal

never a good idea to put a car into a house refi...NEVER

not being condescending.

[nemelek]

Originally Posted by Shroomster

never a good idea to put a car into a house refi...NEVER

not being condescending.

My step daughter refinanced and paid her cars off. Then she traded the cars for newer cars and leased them. I tried to explain that she now will be paying for a car for 30 years that she no longer owns. Her only chance out of the financial hole that she is digging is hope for an inheirtance.

In 2000 we took out a second against the house and used that to buy a Dodge diesel truck and new trailer. That was when you could easily use the interest as a tax deduction. The interest against the house was also lower than car loans at that time. We paid everything off in 3 years. In general it is not a good idea, but sometimes it works.

[Shroomster]

Originally Posted by nemelek

My step daughter refinanced and paid her cars off. Then she traded the cars for newer cars and leased them. I tried to explain that she now will be paying for a car for 30 years that she no longer owns. Her only chance out of the financial hole that she is digging is hope for an inheirtance.

In 2000 we took out a second against the house and used that to buy a Dodge diesel truck and new trailer. That was when you could easily use the interest as a tax deduction. The interest against the house was also lower than car loans at that time. We paid everything off in 3 years. In general it is not a good idea, but sometimes it works.

I can see the reasoning...sometimes necessity outweighs somethings....but from a score standpoint and trying to get financing currently it would do better to finance the car directly with a lender under a shorter term with a lower rate if possible....