Latest Posts
Home > Ask The Get Out of Debt Experts > I Used Seven Credit Cards to Pay Off a House. – Ginger

I Used Seven Credit Cards to Pay Off a House. – Ginger


“Dear Steve,

I used 7 credit cards to pay off a house.

How can I make a plan to start repaying my debt



Dear Ginger,

Well that’s a new situation I don’t think I’ve ever had to deal with before.

I’m going to assume that when you say “a house” that it is your house.

The problem here is that the house, now free and clear, is a valuable asset for creditors to go after if you default on your payments and they sue you.

I’m always a firm believer in calling your credit card companies to work out a payment plan you can meet. If you are not behind on your bills, they probably won’t give you the time of day.

In that case, you should probably contact a debt management company and ask to be put on a debt management plan. That will give you one monthly payment at typically 2% of the the balance when you begin, on a monthly basis.

If you can’t afford that kind of payment then we’ve got some bigger issues to deal with.

I’m curious, what was the motivation to pay off the house using the credit cards? Interesting tactic.

I can see how this could be used in a bad way that possibly would let you pocket the cash from the fair market value sale of the house. The problem would be if you did this within a year or so of filing bankruptcy to discharge the credit card debt and if the creditors challenged the sale of the house to another party as a “fraudulent transfer” or a “fraudulent conveyance”. Could this be a possible fraud loophole that someone would use to scam creditors? Might be.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Welfred

    having 7 credit cards for a house is not easy debt. Nice advice, i am reading your article how to get out from a debt. It might be useful in the future. thanks
    .-= Welfred´s last blog ..ANZ Balance Visa Credit Card =-.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.


I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.