Refinancing For Credit Cards Is A Bad Plan

Marla's husband wants to refinance their rental house in order to pay off his credit card debt. Dave wouldn’t do it, but he thinks Marla needs to be on the same page with her husband.

QUESTION: Marla in Oklahoma City is calling because her husband wants to refinance their rental house in order to cash out $10,000 to pay off his credit card debt. Dave wouldn’t do it, but he thinks Marla needs to be on the same page with her husband.

ANSWER: You guys need to start working together on your money. He doesn’t have credit cards. We are married. Remember that part?

No, I would not refinance a rental house to pay off the credit cards, but the two of you need to be on the same page working on your money together, because your fear is he’s going to run the cards back up after having paid them off by borrowing—unless you’re on a budget that you’re operating together where we take our income and put it at the top of the page. And we spend our income on paper, on purpose together, we both have a vote on that, but that’s not going to include a vote that puts us into debt. We’re going to stick to that spending plan that we both have a vote on and we both agreed to, which doesn’t put us into debt. If you had that, then you’d be less nervous about this.

Quit treating him like he’s four and expect him to be a man. Just say, “I really need a husband. I don’t want a little boy. I want to be married to a man, and a man carries his share of the responsibilities in this.” We’re going to work together. We’re going to sit down and put together a plan. You don’t have any respect for him in this area of his life. That’s sad. You guys need to work on that in your relationship, and he needs to re-earn your respect. You being his mommy and protecting him from himself is not going to do that. The debt is not the problem here; it’s the symptom. Let’s deal with the real problem, and the debt will take care of itself.