credit card question

my spouse and I have a numerous amounts of credit cards. Majority of the credit cards are in my wifes name. I am listed as a authorized user. A lot of the credit cards have cash advances to help in paying current bills. The amount of interest applied as well as the minimum amount due per month is getting to be a current problem. Will my credit be affected if my wife becomes late on payment of the minimum amount paid monthly. Also, like I have stated these credit cards are in my wifes name. Can she file through these credit card counseling services with her credit cards to help pay-off her cards. If she can will it affect my current credit card status. Why I am asking this is because we have never been late in making a payment yet and have a excellent credit report, yet due to economical reason we have built up a large debt not exceeding 35,000. One other thing.. Do you have other alternative means we can try. We don't want to file bankruptcy nor we want to be late in paying our cards because of current excellent rating in repayment. Any help would be aprreciated.
Thanks for your time,
Bobby

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by bjg:
my spouse and I have a numerous amounts of credit cards. Majority of the credit cards are in my wifes name. I am listed as a authorized user. A lot of the credit cards have cash advances to help in paying current bills. The amount of interest applied as well as the minimum amount due per month is getting to be a current problem. Will my credit be affected if my wife becomes late on payment of the minimum amount paid monthly. Also, like I have stated these credit cards are in my wifes name. Can she file through these credit card counseling services with her credit cards to help pay-off her cards. If she can will it affect my current credit card status. Why I am asking this is because we have never been late in making a payment yet and have a excellent credit report, yet due to economical reason we have built up a large debt not exceeding 35,000. One other thing.. Do you have other alternative means we can try. We don't want to file bankruptcy nor we want to be late in paying our cards because of current excellent rating in repayment. Any help would be aprreciated.
Thanks for your time,
Bobby<HR></BLOCKQUOTE>


My response:

Texas is a community property State. Therefore, any debts incurred during the marriage, and the responsibility of payment therefor, belong jointly to the two of you, even if you weren't an authorized card user. For example, if your wife had "secret" credit cards and debt, and she passed away, you would be on the hook for payment.

You can try a credit card counselor - - but be aware, any agreements made for lesser sums or reductions on your debts will be recorded on, and affect, your credit report.

The interest on the debt is not tax deductible. Therefore, it might be a good idea for you to refinance your home to pay off the cards. Two good things happen when you do that: 1) the interest on a mortgage loan is tax deductible; 2) the increase in your mortgage will be small, and spread over many years; i.e., the increase in mortgage payment will be much smaller than the total of your current CC monthly payments.

Of course, in every financial endeavor, there are good points and bad points. You should seek financial guidence to make you aware of all points to consider, and whether such would be a good idea for your particular situation, so that you can make an informed decision.

Good luck.

IAAL


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