Interest rates are killer (especially compounding interest). Credit card debt is considered short-term debt and therefore demands a higher interest rate than long-term debt, like a mortgage.
You want to get rid of your debt that has the highest interest rates first. This probably means paying off your credit cards first, while only paying the minimum payments on your mortgage.
If you simply cannot afford to pay off such debts, then another strategy is to borrow on the equity of your house (a second mortgage) to pay off your high-interest debt (credit cards), which will lower your average interst rate and consequently lower your payments.
As a side note, you should be very careful about the kind of mortgage that you have. There are kinds where even if you make the minimum payments, you can still lose your house.
Go see a financial advisor and they will help you work through all this and help you become debt free. |