Carolyn Built Her New Home Using Credit Card Cash Advances

“Dear Steve,

I built a new home using credit card cash advances. I now have $85,000 in credit card debt and the interest rates average 25%. I can make up to $2500/month in credit payments but the interest rates are killing me.

I had great credit before this issue. I have a good job and predictable income.

What is the best solution for me to get these credit card interest rates below 10%? I don’t want to hurt my credit long term.


Dear Carolyn,

I think it is far too late to worry about hurting your credit. With rates like 25% it leads me to believe that you are already showing signs of being a credit risk.

What in the world were you doing building a home using cash advances from credit cards. That is a horrible way to finance a home. That is what mortgages are for. First off, I never recommend that anyone get a cash advance as long as they carry any balance on a credit card. When you do have a balance and take a cash advance the interest rate on the cash advance will be much higher but the creditor won’t apply your payments towards the cash advance until you pay off the entire purchase balance first.

Carolyn, the only way to lower these rates is going to be to get a mortgage. Even if you found a balance transfer deal for $85,000, which I seriously doubt, the 3% transaction fee to do that would be huge.

Contact a local mortgage broker or


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Steve Rhode
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