jazz4cash said:Whoops....help me out here, FD. What's better than a HELOC to finance a new car?
FinanceDude said: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.
brewer12345 said: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.
FinanceDude said: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.............
brewer12345 said: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.
jazz4cash said: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.
jazz4cash said: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.
SLC Tortfeasor said: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.
Laurence said: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!
clifp said: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.