Nonentitled wrote:
Whatever you debt-ridden people do, DON'T take out a mortgage on any property to pay off credit cards!
Credit cards = unsecured debt. You file bankruptcy, the credit companies are just SOL.
Mortgage = secured debt. The bank can repo the property in order to get their money back.
I have a lot of stupid friends.
Interesting theory. But the other way to look at it is:
Credit cards = 18% non-deductible interest
Mortgage = 5-6% deductible interest
I guess it depends on how likely it is you'll ever declare bankruptcy.
