OK, a few things. First and foremost, my wife recently had a baby, and we have accumulated several doctor bills. Of course the doctors put each visit on a separate bill, and demand payment on each one. So we get around 10 seperate bills each month. Lately, things have been tight, so we are only sending them $5-$10 a month each bill. They said that wasnt enough, and threatened us with collections. Well, we just received the bills, and they have a 0 balance, so I guess they did. What are my rights and responsibilities here? Next, I have 2 CC (Discover & Citi) a Dell computer on the Dell charge, and a car payment through Household.The CC debt is around $8500, I owe around $10000 for the car, and $1400 to Dell. I owe a minimum of $90 on Discover a month, $105 to City monthly, $50 to Dell, and my car payment is $338. If I refi my HELOC,which I currently am paying $107 (interest only) I will get rid of the two Credit Cards, the Dell and all but $2500 of the car payment. My payment will be around $360 a month, but it will free up a lot of cash so I can send more each month. I also picked up a part time job. I figured it I send $600 to the second mortgage each month, it would be paid off it around 7 years... Thoughts?
It sounds like a good plan as long as you don't use any more credit until the Home Equity loan is paid off. In general it is not advisable to pay off unsecured debt by taking a second mortgage, but it seems like you have a good plan. As long as you keep the part time job and are able to pay off the home equity loan in 7 years, you should be all right
