Don’t Miss Your Mortgage Payment - Charge It!
So there’s too much month left at the end of the money. Maybe you had a severe financial setback out of the blue. Maybe you simply miscalculated how much house you can afford.
If you’re like many Americans, you’ve met all your monthly bills - credit cards included - but just can’t seem to meet that mortgage obligation. Why not use your credit card to make the mortgage payment?
American Express started a program allowing this in May, albeit with some stipulations. Now, a new program called CardIt is also enabling consumers to charge their mortgage payments, apparently with more freedom. CardIt’s fee is about 3 to 5 percent of the mortgage payment.
The risk here is that it could become a habit and drain your credit card available balance fast, thereby hurting your credit score. This is particularly likely for free spenders without any financial self-discipline whatsoever or those who have simply bought a house beyond their means. As Justin McHenry suggests in his Zen Personal Finance blog, it may just be better to attempt negotiations with your mortgage lender if you are repeatedly unable to meet payment obligations.
Another question that must be raised here is, “Are lenders enabling American consumers too much?” How much more dependent on credit can our already credit-obsessed society become? And is this good for the economy? Though handy in a pinch, charging the mortgage payment could be playing with fire.
