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Why Avoid Paying Your Mortgage With Credit Cards?

On Behalf of | Apr 20, 2018 | Credit Card and Medical Debt

When you face financial hardship, it is easy to turn to credit cards for quick relief. In some cases, this is a reasonable choice, or the least-bad choice available in the moment, There is no reason to beat yourself up for making the best choice you can in a given difficult situation. However, many people fall into the trap of delaying disaster with credit cards, only to create a larger, more complex financial problems that they may be unable to clean up.

If you find yourself tempted to use a credit card to pay your mortgage, understand the potential consequences of doing so to make sure that it is truly the best option you have available.

First, it is important to understand that, in most cases, lenders who handle mortgages simply do not allow borrowers to make payments using a credit card. However, this is only a slight setback if you are truly out of other options. You may easily find third-party providers who facilitate making mortgage payments using a credit card, but these services come with exceptionally high fees.

Furthermore, if you do not pay off the borrowed amount by the end of your billing cycle for the card, then you essentially compound the interest that you are already paying on your mortgage. Beyond this, you also decrease your available credit substantially, which can negatively affect your credit score.

If your debts are piling up around you and you find yourself constantly putting out financial fires, yo may have more options than you realize. Consider examining what a bankruptcy can offer you, or see if there are other financial options you can use to work your way out of debt and begin rebuilding your financial practices wisely.