|
|
Joined: Feb 2004
Posts: 6,031
Campfire Tracker
|
OP
Campfire Tracker
Joined: Feb 2004
Posts: 6,031 |
Read something today, where a guy suggested to take a home equity line of credit, use your equity to pay your bills, using the checkbook out of the credit, and then put every paycheck you get towards paying down the line of credit anything over on the mortgage. At least that’s the way. I understood it? Does this make sense?
|
|
|
|
Joined: Dec 2005
Posts: 4,174
Campfire Tracker
|
Campfire Tracker
Joined: Dec 2005
Posts: 4,174 |
If one wishes to secure their unsecured credit debt and bills with their home, maybe. HA!
|
|
|
|
Joined: Feb 2004
Posts: 6,031
Campfire Tracker
|
OP
Campfire Tracker
Joined: Feb 2004
Posts: 6,031 |
I think the idea was that as long as you make more than you spend you’d pay the house off faster.
Could to the same by just putting “extra” in a back account until you could lump sum pay it off. Or just put any extra towards the principal monthly…
|
|
|
|
Joined: Feb 2004
Posts: 6,031
Campfire Tracker
|
OP
Campfire Tracker
Joined: Feb 2004
Posts: 6,031 |
But it give you easy access to money in emergency situations.
|
|
|
|
Joined: Jan 2002
Posts: 12,852
Campfire Outfitter
|
Campfire Outfitter
Joined: Jan 2002
Posts: 12,852 |
That’s what emergency funds are for.
The psychology of “just borrow it” in case of emergency will lead the vast, vast majority of people further into debt.
Sic Semper Tyrannis
|
|
|
|
Joined: May 2011
Posts: 2,196
Campfire Regular
|
Campfire Regular
Joined: May 2011
Posts: 2,196 |
Makes sense when you're paying off high interest loans with the HELOC as long as the interest rates are substantially lower on the HELOC than the bad debt loans
Just don't turn around and run up bad debts again once getting them paid off with the HELOC. That's where too many people mess up. They roll all the bad debt into a HELOC and then go right back to running up credit cards and buying toys that they don't need
Last edited by TRnCO; 03/29/24.
Laws aren't preventative measures. In other words, more laws won't prevent gun crime from happening.
|
|
|
|
633 members (160user, 1beaver_shooter, 12344mag, 1936M71, 1lessdog, 10Glocks, 66 invisible),
2,107
guests, and
1,295
robots. |
Key:
Admin,
Global Mod,
Mod
|
|
Forums81
Topics1,191,904
Posts18,479,364
Members73,947
|
Most Online11,491 Jul 7th, 2023
|
|
|
|
|