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Ok here it go. I originally purchased my home back July 4, 2003. Everything was going great. I was debt free at the time with money in the bank. Well nearly 3 years later I'm 30,000 in credit card debt and I was recently server with child support papers (seem like I have a child that is 8 years old). I'm trying to prepare for possibly paying child support and somehow getting my credit card situation under control. I recently took a DNA test for the child... results will be back any day now.

As far as the cards here they are:

Chase 5,000 (rounding off)

CitiBank 4,300

Corvette 2,300

GM 4,800

AMEX 5,000

ATT 4,000

I have (2) car notes as well (I owe 9,000 on my car) and wife owes over 18,000 on hers.

Is it a good idea to try to re-fi the house and get a loan to pay off the car (my car) and/or the CC's? Everything is becoming unmanageable. I would love to get the CC's down to 1..2.. or 3 payments. But making 6 payments on CC monthly can become a bit confusing.

Looks like I may have to get a 2nd job if turns out I am a new dad because my budget is so tight right now.

My current loan on my house

Purchase price $181,000

APR 6.02, rate 5.875 30 year fixed

Purchased July 4, 2003

I'm talking to DCU.ORG right now about possible re-financing the loan. I thought about getting a line of credit and pay off the CCs and write off the interest. I was also thinking about going with a interest only loan to lower the payments (if the child is mine) until my situation get better. I'm looking to sell my home in 3-5 years in all honesty.

If anyone can point me in the right direction I'd really appreciate it. I recently had a stress attack and really need to face this problem head-on to get a grip on it.


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I totally understand your stress.


You have what is now an awesome rate on your mortgage. To refinance would be an option, but you will have total closing costs to consider, and since you probably don't have much in the line of reserves, you would not qualify for a conforming/prime rate program.

So: First see if your credit scores and the equity in your home have you qualified for a 2nd mortgage. The rate will be higher than a first mortgage, but in the long run it would be the best for you. (Do not get a HELOC type 2nd. The rate sounds better,but they can hurt your credit and the rates do go up. and up. and up.


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