Robert & Bonnie have been retired for 3 years. They are both in their 70’s and have been carrying credit card debt for the past two years. In addition, they have been contributing to their grandchildren’s 529 college saving plans. Both are thinking about refinancing their mortgage to pay off their high interest unsecured debt and any upcoming medical expenses.
Total Accounts: 12
Credit Score: 610 (declining)
Credit Utilization: 83% (almost maxed out and paying high interests on debt)
Debt to Income: 83% (using majority of their take home pay to pay off debt)
Spending: $3500 in monthly payments. High interest rates between 16-30%