credit card usage

June 28th, 2012 by Questions

I am going to file a consumer proposal but i am worried about renewing my mortgage, which is up for renewal in jan. I dont think i will make it to the renewal date without defaulting payments with my creditors. what will happen if i use a cash advance to renew my mortgage early(approx $1800). Anyone with advice is appreciated.

Posted from: Ontario


One Response to “credit card usage”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

It is a bad idea to use the cash advance to renew your mortgage early. You are better to simply wait to renew it. What happens with renewals is typically there is no additional credit check or verification done, a renewal is simply rolling over the existing mortgage and the banks as a general rule don’t worry about confirming details as they did that originally. So typically you are better to leave it as it is and simply allow your mortgage to roll over. The problem with using the money from a cash advance is that you would be purposely taking on more debt with no intention of actually paying that cash advance back. This is fraudulent and would create far more problems that it is worth.

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