New Mortgage

[wilsarnie]

Just to clarify something my friend said the other day... her 2 year fixed rate mortgage is up for renewal in couple of months. She's going to apply for a slightly higher mortgage so she can pay off �5000 on her credit card. She says an extra �5000 is nothing on a 30 year mortgage.

I'm not sure she's right, can this happen? I don't understand how they would get that money to the credit cards, it doesn't just go into her bank does it?

[EverClean]

It can happen and regularly does. The money will go to her and she will have to pay off the credit card.

[EverClean]

The issues she now has is that a debt that was previous viewed as short term will now take 30 years to pay off and the debt is now secured on her property - so should she have any issues paying it then her home is at risk. Credit cards are unsecured so the credit card company can never touch her home.

[Ethel]

Credit card and any other unsecured loan can be attached to your home if you default. It has to go to court and a charging order is issued against your property.


http://www.ukadvice.com/bankruptcy/collections /7.html