Low credit score HELOC
Need advice: $90k CC debt, substantial home equity, trying to preserve 2.85% mortgage
My wife and I are trying to climb out of a hole after several years of startup jobs and an attempted business venture that didn't work out. We depleted our savings and accumulated about $90k of credit card debt.
I started a stable W-2 job in September 2025 earning $185k/year, and my take-home pay is about $11,200/month. My wife stays home with our four kids (all public school age), though we're both looking for ways to generate additional income. We live 20 minutes outside Boston.
House:
Bought early 2021 for $1.1M
Estimated value today: $1.3M-$1.4M
Mortgage balance: ~$648k
30-year fixed at 2.85%
Credit:
We had upper-700 scores for 15+ years.
During a rough stretch in April-June 2025 we had several 30-day late payments.
We've been current on every account since July 2025 and scores have recovered into the mid-600s.
Current debts:
~$90k total credit card balances.
About $2,600/month in minimum payments.
Mortgage payment (including taxes) is $4,045.
One car loan has two payments remaining, then no auto debt.
The biggest challenge is cash flow. We are current on everything, but after the mortgage and card payments there isn't much left for a family of six.
We are willing to do whatever it takes and are not trying to avoid responsibility. We just don't want to lose our 2.85% mortgage and would love to find a way to use some of our equity to refinance the credit cards.
Questions:
Has anyone obtained a HELOC or home equity loan with scores in the mid-600s and older late payments?
Are there lenders that are more flexible with strong equity and stable income?
Would you pursue a HELOC, fixed-rate second mortgage, or something else?
Any success stories from people who dug out of a similar situation?
Constructive advice appreciated. We know we made mistakes and are trying to fix them.