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Should we try for a home equity loan?


Jen&Alex
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I looked everywhere, and found NACA site, made an apt. for a workshop. Should we try to get an equity loan to pay our CCs? Do you know anything about NACA and if they will help in our situation? I know that I am just being all over the place, but I am at the point where I am trying to keep my job, negotiate with cards, and looking for a supplemental income. Alex seems to be totally overwhelmed and it is up to me now. :shock: If I get an equity loan at 12%, it still bits some of my cards... :confused::confused: Unfortunately, our debt to income ratio is hurting us. Also, we are 90 day delinquent.

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I've done this several times through the years - you cannot borrow your way out of debt. There are so many options including debt settlement, debt consolidation and etc. I've finally decided to stop the cancer and do debt settlement and settle for less and get this over. I wish I had done it years ago and had saved the equity in my home because eventually I ended up here anyway by borrowing from Peter to pay Paul - if you can't afford it now you won't be able to afford it later.

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This is the first time you have mentioned about being past due on your home. Really the CC's are now second fiddle. Fix the home problem first.

Did your income situation change or did you just overspend and things finally catch up with you? Me and DW have had both happen as have most here.

Without knowing more about your situation we cannot offer true advice. Sorry.

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I agree with Ms. Starbucks...don't mess with your home for credit cards. Just my HO.

Call the CC companies and tell them you need a "rehabilitation plan" or to make arrangements. Putting your home on the line is the worse thing you can do, unless there's more to the story.

I have known a couple of people who have done this and said it was the worse decision they ever made, one did a reverse mortgage and now she no longer has any equity in her home after living there for over 30 years.

If you can't make payments on your CCs you more than likely cannot afford an equity loan. Equity loans are intended to help you build your assets, a CC is not an asset.

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Thank you every one of you for helpful suggestions. We are not behind on our bills, only CCs. I am talking to BofAm. Have couple of temporary plans already set up with some. Became a second job to me (Jen), don't have time to go to the gym, or anything. We are not sleeping well, both of us. This is so overwhelming. But emotions aside, I was thinking to get an equity only because I thought we can write down on our taxes, especially with our daughter in college. We can not claim CCs, but we can claim equity...:rolleyes:

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  • 2 months later...
I don't see nothing wrong with paying off the cards with a home equity loan. If he doesn't pay off the CC's they are gonna come after his house anyway. Lots of judgements and stuff.

Just my 2

Even if they got judgments on him I think the most they could do would be attaching a lien to the house , not forcing him to sell it.

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Who wants liens or judgements hanging over them?

Usually if you are having a hard time paying for house....and credit cards....eventually it will all come falling down. It's all depends on IF paying the CC's off would help him. Would he be able to continue paying mortgage without further borrowing from Peter to pay Paul?

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