Couldn’t agree more with your take. The lower monthly payment looks tempting, but stretching credit card debt over a 30-year mortgage can really add up—sometimes double or triple what you originally owed. I’ve run the numbers before and it’s eye-opening. Plus, if you’re not 100% sure you won’t rack up new card balances, it’s just trading one problem for another. There’s also the risk factor—credit card debt is unsecured, but once it’s rolled into your mortgage, your house is on the line. That’s a big gamble for some short-term breathing room.
“credit card debt is unsecured, but once it’s rolled into your mortgage, your house is on the line. That’s a big gamble for some short-term breathing room.”
That’s the part that always makes me pause. I refinanced last year and considered rolling in some old card balances, but the idea of turning credit card debt into something that could risk my home? Just didn’t sit right. The math looks good at first, but when you see how much interest stacks up over 30 years, it’s kind of wild. If someone’s super disciplined and won’t rack up new debt, maybe it works, but it’s a slippery slope for most.
Rolling Credit Cards Into a Mortgage: Risky or Smart Move?
“the idea of turning credit card debt into something that could risk my home? Just didn’t sit right.”
That’s the line that gets me every time too. People see the lower interest rate on a mortgage and think, “Hey, why not just toss the credit card debt in there and be done with it?” But it’s not apples to apples. You’re swapping short-term pain for a long-term gamble, and the stakes are your roof.
I’ve seen folks do this and breathe easier for a while, but then life happens—car breaks down, medical bill pops up, or, let’s be honest, the Amazon cart gets a little too full. Suddenly, the credit cards are back up and now the house is on the line for the old debt *and* the new. That’s a tough spot.
The other thing people miss is the interest over time. Sure, 6% on a mortgage looks way better than 20% on a card, but stretch that over 30 years and you’re paying way more in the end. It’s like trading a sprint for a marathon—less sweat up front, but you’re running a lot farther.
I get the appeal, especially if someone’s drowning in minimum payments and needs a reset. But unless you’re laser-focused on not running up those cards again, it’s just moving the problem around. I’ve had clients who did it and were fine, but they were spreadsheet people—tracking every penny, cutting up cards, the whole nine yards. Most of us aren’t wired that way.
If you’re thinking about it, I’d say run the numbers, look at your habits, and be brutally honest with yourself. Sometimes the best move is just to chip away at the cards, even if it’s slow and painful. At least your house isn’t in the crosshairs.
People see the lower interest rate on a mortgage and think, “Hey, why not just toss the credit card debt in there and be done with it?” But it’s not apples to apples.
Had a client a few years back who rolled about $25k in cards into a refi. At first, it was like a weight off their shoulders. But a year later, those cards were creeping up again, and now their mortgage was higher too. It’s a relief for some, but if you don’t change the habits, it’s just a reset button that comes with a bigger risk. I’ve seen it work, but only for folks who really buckle down.
Yeah, I’ve seen this play out a bunch of times. People get jazzed about the lower rate, but they forget they're just moving the debt around, not erasing it. And you’re right, if spending habits don’t change, it’s just a matter of time before those balances sneak back up.
One thing I’d add—rolling credit card debt into your mortgage can also mean paying interest on that debt for a *lot* longer. Sure, the rate’s lower, but you might be stretching that $25k over 20 or 30 years instead of paying it off in 3-5. That can make the total interest paid way higher in the long run, even if the monthly payment looks friendlier upfront.
I’ve had friends who did this and felt instant relief, but then a year later, they’re back in the same spot, just with a bigger mortgage. It’s not always a bad move, but it takes real discipline to not fall back into the same traps. If you’re not careful, it’s a cycle that’s tough to break.
