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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 08:35 PM   #21
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by FinanceDude
You'd be surprised at how many folks with GOOD CREDIT will bite on it..............some of those same nice folks that think HELOCS are the BEST way to finance the two new luxury SUV's and the cruiser boat.............
Whoops....help me out here, FD. What's better than a HELOC to finance a new car?
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 08:39 PM   #22
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by jazz4cash
Whoops....help me out here, FD. What's better than a HELOC to finance a new car?
Cash.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 08:40 PM   #23
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Cash.
I had to chuckle at this. Its pretty much spot on.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 09:14 PM   #24
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

I think 0.0% finance is better also. Some manufacturers offer it on many cars they offer.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 09:47 PM   #25
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Cash?
I guess I thought the term "finance" meant something else!

I could get 0.0% all day long, but what really matters is 0.0% of what price?........ list? If they offer 0.0 OR a cash back rebate, it's usually better to negotiate the best price, take the cash and go to the credit union, or gawd forbid use a HELOC.

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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-21-2007, 10:14 PM   #26
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

I think we need to form a company, pool our money, and start giving out freedom loans. We can all retire early if we could get a fixed 13% return every year!
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 09:07 AM   #27
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Quote:
Originally Posted by jazz4cash
Whoops....help me out here, FD. What's better than a HELOC to finance a new car?
Cash, also known as "Chinese Financing".................ONE LUMP SUM............

Seriously, I find it interesting how many people tie up the equity in their home on a DEPRECIATING asset.............

I think HELOCS are good for four things:

1)Home improvements
2)Help pay medical bills and other hardships in an emergency
3)Debt consolidation, as long as the cards are cut up
4)Second home, vacation home.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 10:53 AM   #28
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

We used a HELOC to pay off the student loans when our income made us ineligible for the tax deduction. Moving it to mortgage debt made it tax deductible again. We planned on having it paid off by now, but I went back to school, oh well.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 11:00 AM   #29
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Quote:
Originally Posted by FinanceDude
I think HELOCS are good for four things:

1)Home improvements
2)Help pay medical bills and other hardships in an emergency
3)Debt consolidation, as long as the cards are cut up
4)Second home, vacation home.
I'd go as far as agreeing with #2. As for the rest, if yu have to borrow against home equity, you can't afford it.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 01:39 PM   #30
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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I'd go as far as agreeing with #2. As for the rest, if yu have to borrow against home equity, you can't afford it.
I guess if you need debt consolidation, you could go with one of those "friendly" "non-profit" counseling services that is always looking to help..........

However, $40K at 16% interest or $40K at 9% interest with a tax deduction? As long as the cards are CUT UP, there are worse ways to go than that............. :P
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 01:49 PM   #31
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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However, $40K at 16% interest or $40K at 9% interest with a tax deduction? As long as the cards are CUT UP, there are worse ways to go than that............. :P
Once a junkie, always a junkie. The cards are never really cut up for the vast majority of those who ran 'em up in the first place. So I don't buy that rolling the debt to a HELOC is a good idea.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 02:51 PM   #32
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by brewer12345
Once a junkie, always a junkie. The cards are never really cut up for the vast majority of those who ran 'em up in the first place. So I don't buy that rolling the debt to a HELOC is a good idea.
Gotcha...............

At least I didn't list the TEN GREAT REASONS to get a HELOC, I guess I threw away that propaganda when I left Chase................
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-22-2007, 11:27 PM   #33
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

I think the term "finance" generally implies some form of credit, but you say paying cash is otherwise known as chinese financing...now there's a common reference. This thread has gone to mush.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-23-2007, 07:38 AM   #34
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Quote:
Originally Posted by jazz4cash
I think the term "finance" generally implies some form of credit, but you say paying cash is otherwise known as chinese financing...now there's a common reference. This thread has gone to mush.
Based on what I saw in China a few months ago--it may become a common reference. They've got a lot of ground to cover before they're truly competitive with western economies (95% of the population lives in poverty we would have a hard time conceiving of), but they're definitely more of an LBYM government/society than we are.

Oh yeah, and back to the point of this thread, HELOCs are bad unless you have no other choice (i.e. medical emergency--and I'm not even sure about that). I definitely don't think they should be used to pay off cc debt unless one has dealt with the issues that caused the debt to begin with. Of course I'm a debt-free non-homeowner, so...*shrug*
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-23-2007, 09:35 AM   #35
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by jazz4cash
I think the term "finance" generally implies some form of credit, but you say paying cash is otherwise known as chinese financing...now there's a common reference. This thread has gone to mush.
Umm........it was a joke........you have heard of JOKES, right??
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 03-23-2007, 05:49 PM   #36
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Of course (can't speak for Jazz4Cash tho). I was just pointing out there's some obvious truth in the witticism (which I'm stealing, BTW).

Anyway, I think this thread is going more to oatmeal than to mush--more fiber. 8)
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 04-13-2007, 03:33 PM   #37
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

Okay... I have a serious question about this Freedom Loan.

Situation: Married, worked for major airline for 10+ years, finally bought new house, 12 months later laid off due to 9/11, out of work for 32 months, had some savings in preparation for layoff but accumulated big chunk of credit card debt just paying basic home/car expenses and eventual moving expenses (saving remaining cash for mortgage and other bill-like things), finally moved across country to obtain job. Now working, slowly starting to recover (slow housing market in MSP resulted in carrying two mortages for over a year, resulting in a somewhat slower start than anticipated).

Current situation: $45k in credit card debt, 32k in 8.25% Home Equity Loan, $219k in 6.25% Mortgage. House is worth $255k. Have IRA and such but not directly relevant to discussion.

Rolling the $32k H Eq Loan and mainly-over-21% credit cards into a "Freedom Loan" lowers the monthly payment by roughly $600 ($1010 or so versus over $1600), but the term is obviously far longer and the attachment to the house is obviously a concern if we ever wanted to move (don't anticipate doing so, but then again I thought I'd still be working at the airline 1000 miles away).

Comments? Risks? AM I being stupid to even consider such a loan?
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 04-13-2007, 03:53 PM   #38
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

If you've got $60,000 in credit card debt, and most of it is over 21%, then maybe you're actually the rare person whose financial circumstances could actually be improved by the "Freedom Loan."

You definitely need to consolidate that debt into something with a lower rate. Adding tax-deductibility would obviously be good too. If you don't do something, you'll be an indentured servant for a long time. Good luck.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 04-13-2007, 03:55 PM   #39
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by SLC Tortfeasor
If you've got $60,000 in credit card debt, and most of it is over 21%, then maybe you're actually the rare person whose financial circumstances could actually be improved by the "Freedom Loan."

You definitely need to consolidate that debt into something with a lower rate. Adding tax-deductibility would obviously be good too. If you don't do something, you'll be an indentured servant for a long time. Good luck.
I actually misestimated the CC load -- 45k is a better approximation. We had a lot more, but that's what the 32K Home Equity Loan was mainly used for.

BTW, the unemployment experience was interesting, but one aspect sucked -- I learned that a CC company can double their interest rate w/o giving written notice simply because you no longer have a job (and thus raise red flags in their system). Not a good thing when one is depending on those damn things (I had several low interest cards with no balance when I started). Every time I pay one off I cut it up with a little ceremony...

W.r.t. the Freedom Loan, I think the key question is "How tightly do I want to tie myself to my current house?".

I also don't know if the "Freedom Loan" is actually tax deductible. If it is, that would obviously be a plus.
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR
Old 04-13-2007, 07:06 PM   #40
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Re: Special 125% "Freedom Loan": 2 points and 13.653% APR

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Originally Posted by Laurence
I think we need to form a company, pool our money, and start giving out freedom loans. We can all retire early if we could get a fixed 13% return every year!
Check out Prosper.com, pretty much the same idea. Just don't make the mistake I made and actually loan money there. I'll be lucky to get my money back at the current rate of defaults.
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