Comments on: Loans to Get Out of Debt http://www.thedebthawk.com/loans-to-get-out-of-debt Get Out of Debt Using Disciplined Personal Finance Wed, 23 Jun 2010 07:33:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mark http://www.thedebthawk.com/loans-to-get-out-of-debt/comment-page-1#comment-124 Mark Wed, 26 Aug 2009 18:24:33 +0000 http://www.thedebthawk.com/?p=123#comment-124 Mrs. Smith, My concern with paying off credit card debt with a HELOC is that you put your house at risk if your financial situation changes and you are unable to pay the loan. Saving money on interest is good, but you need to seriously consider the risk of losing your house. Mrs. Smith,

My concern with paying off credit card debt with a HELOC is that you put your house at risk if your financial situation changes and you are unable to pay the loan.

Saving money on interest is good, but you need to seriously consider the risk of losing your house.

]]> By: Mark http://www.thedebthawk.com/loans-to-get-out-of-debt/comment-page-1#comment-123 Mark Wed, 26 Aug 2009 17:33:51 +0000 http://www.thedebthawk.com/?p=123#comment-123 You are absolutely right Steve. It is horrible to engage in these quick fix schemes. Putting your house or retirement at risk for this type of debt is foolish. You are absolutely right Steve. It is horrible to engage in these quick fix schemes. Putting your house or retirement at risk for this type of debt is foolish.

]]> By: Mrs. Smith http://www.thedebthawk.com/loans-to-get-out-of-debt/comment-page-1#comment-122 Mrs. Smith Wed, 26 Aug 2009 16:35:29 +0000 http://www.thedebthawk.com/?p=123#comment-122 I agree, to a certain extent. We just utilized a HELOC to pay of our credit card (which was @ a 2% interest, until we made a relatively large (3K), emergency purchase on it & BOA raised it to 14.99%). We still plan on focusing & paying the debt down in record time, but at least we don't feel like we're being totally taken advantage of; and we're paying less than half of the interest than the credit card. That excites us & keeps us motivated to paying it down. It was a positive move for us. However, if we didn't close the BOA card & continued to use it, that would have been plain old dumb. I agree, to a certain extent. We just utilized a HELOC to pay of our credit card (which was @ a 2% interest, until we made a relatively large (3K), emergency purchase on it & BOA raised it to 14.99%).

We still plan on focusing & paying the debt down in record time, but at least we don’t feel like we’re being totally taken advantage of; and we’re paying less than half of the interest than the credit card. That excites us & keeps us motivated to paying it down.

It was a positive move for us. However, if we didn’t close the BOA card & continued to use it, that would have been plain old dumb.

]]> By: Steve Rhode http://www.thedebthawk.com/loans-to-get-out-of-debt/comment-page-1#comment-121 Steve Rhode Wed, 26 Aug 2009 13:01:41 +0000 http://www.thedebthawk.com/?p=123#comment-121 Draining protected funds in a 401(k) or 403(b) or converting unsecured debt to secured debt against the house is not a good idea at all. Generally the loan plan is just the first thought that comes to mind. It is a knee-jerk reaction. Steve Draining protected funds in a 401(k) or 403(b) or converting unsecured debt to secured debt against the house is not a good idea at all.

Generally the loan plan is just the first thought that comes to mind. It is a knee-jerk reaction.

Steve

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