DEAR HARRY: My husband and I just did a reverse mortgage, and I must say that it's a little scary. We are hearing a lot of opinions about it. It was done to ensure that we'll always have a place to live and to relieve us of a large monthly mortgage payment. The thing that is worrying me now is that we will have nothing to leave to our children when we pass. Another thing is our credit-card debts. Friends are telling us not to pay them because any liens or judgments on the house won't hurt us since we are basically not homeowners anymore. I'm afraid that nonpayment will hurt our credit score, which is not so hot anyway. We have about $19,000 in credit-card obligations right now. Please set us on the right path.
Don't listen to people who tell you to stop paying debts
WHAT HARRY SAYS: I see absolutely no reason for you to be concerned about leaving money to your children. It is their responsibility to see that they make the best plans possible for their own financial health. They are fortunate that they do not have to help with their parents' support. I'm certain that you have left them with ideals and principles that have governed your lives. These are far more important for their well-being. Do not listen to people who advise you not to pay your debts. There is still the matter of having credit that you can use on a daily basis. Your credit score would get a swift kick in the pants, at the very least, if you followed their advice. And dried-up credit or bankruptcy could easily make a mess of your plans for the future. Keep making payments on that debt.
Email Harry Gross at harrygross@phillynews.com or write to him at Harry Gross c/o the Daily News, Box 8263 Philadelphia, PA 19101. Harry urges all his readers to give blood — contact the American Red Cross at 800-Red Cross.
FEATURED ARTICLES
More:
|
|
|
|
|
