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Quote by Jean Chatzky

“Rolling all of your debts into a single loan is a good idea - in theory. In fact, it can be a great idea.”

Author

Jean Chatzky is a seasoned financial journalist, born on November 7, 1964. She is known for her in-depth research and insightful views on personal finance, having served as an editor and columnist for several prominent media outlets. more

“A consolidation makes sense only if you can lower your overall interest rate. Many people consolidate by taking out a home equity line loan or home equity line of credit (HELOC), refinancing a mortgage, or taking out a personal loan. They then use this cheaper debt to pay off more expensive debt, most frequently credit card loans, but also auto loans, private student loans, or other debt.”

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Author:Jean Chatzky

“You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.”

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Author:Jean Chatzky

“If you default on an unsecured debt, you won't lose anything (except points on your credit score).”

Ifs Loses Credit Debt Score Default Credit Scores

Author:Jean Chatzky

“When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.”

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Author:Jean Chatzky

“In about one-third of credit card consolidations, within a short period of time, the cards come back out of the wallet, and in no time at all, they're charged back up. Then you're in an even worse position, because you have the credit card debt and the consolidation loan to worry about. You're in a hole that's twice as deep - and twice as steep.”

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Author:Jean Chatzky

“If you have even a smidgen of doubt that you'll be able to stay away from racking up additional debt, don't do it.”

Ifs Able Doubt Debt

Author:Jean Chatzky

“You must be sure - and I mean absolutely positive - that you have the willpower to pay off those credit cards and not use them again.”

Mean Use Pay Credit Cards Willpower Credit Card

Author:Jean Chatzky

“If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.”

Ifs Helping Interest Chance Pay Rate Debt Faster Spirals Interest Rate

Author:Jean Chatzky

“Even in the days of the tightest credit in 2008, HELOCs [ home equity line of credit ] and home equity loans were being made.”

Made Home Lines Credit Equity Loan Home Equity

Author:Jean Chatzky

“Sculpture occupies the same space as your body.”

Body Space Your Body Sculpture

Author:Anish Kapoor

Quote by Jean Chatzky

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