Question for the board: I've got three cedit cards, all near, or at their limits, which is killing my scores. MBNA - CL 25K, bal $24.8K; CITI CL $14K, Bal $13.6K; FUSA CL $5.5K, Bal $4.5K I am trying to do a refi, which will consolidate this debt into my mortgage, but I'm in a catch 22 as I can't get the refi until my scores go up. The easiest boost would be to pay down this debt. My question is whther anyone knows how to consolidate the debt without giving up the credit cards, or accessing home equity. I understand that the credit counseling people only hurt your scores. Any other options?
Live below your means and start paying those cards down. Forget about credit scores. $42K in cc debt is dangerous enough but, to transfer unsecured debt to secured debt is a terrible idea. Put yourself on a cash only diet, put a few bucks in an emergency fund and then, put every quarter you can spare into paying off those cards. Pay minimums on the ones with the lowest rate and as much as possible to whoever has the highest rate.
I don't disagree conceptually. But: I have substantial equity in my house -- about $400K. I need to access it, but currently my fico scores are too low to get there since it is a jumbo loan, and the ltv ratio I can qualify for given my scores is only 65%. So, I must pay down my cc debt to raise my scores, so that I can qualify for a higher ltv and access the equity to get myself out of this mess. High class problem, perhaps, but my income fluctuates considerably -- I am a film producer, and only get paid when things go into production. My next one was just delayed 6 months, so I have to access my equity to stay afloat until the money comes in.
