Posted by kblitz9 on July 26, 2005, 5:39 pm
Hi all.
I have 36k in CC debt paying obscene finance charges.
I also have 17k in a car loan
I own a condo and want to take out some sort of home equity loan to pay
off these debts.
I have excellent credit.
I am selling my condo in about a year where I will profit at least
125k. So I am able to payoff this loan on the sale.
I was told a no cost loan would be ideal. There is not upfront costs.
Yes, I will be paying slightly more per month because of a higher
interest rate...but i will only be holding onto my condo for 1 more
year so the savings up a couple grand upfront seems logical.
Any suggestions are greatly appreciated as well as opinions on a no
cost loan.
thank you.
Posted by Percival P. Cassidy on July 26, 2005, 6:05 pm
I don't know about a "no cost" loan, but our paper recently had a
question about a situation sounding similar to yours.
The reply described it as a "debt CONsolidation" scheme ("CON"
deliberately emphasized): you end up paying more interest in the end in
exchange for lower payments now.
The reply advised the questioner to sell the car first and buy something
much cheaper for cash.
Perce
On 07/26/05 05:39 pm kblitz9@yahoo.com tossed the following ingredients
into the ever-growing pot of cybersoup:
> Hi all.
> I have 36k in CC debt paying obscene finance charges.
> I also have 17k in a car loan
> I own a condo and want to take out some sort of home equity loan to pay
> off these debts.
> I have excellent credit.
> I am selling my condo in about a year where I will profit at least
> 125k. So I am able to payoff this loan on the sale.
> I was told a no cost loan would be ideal. There is not upfront costs.
> Yes, I will be paying slightly more per month because of a higher
> interest rate...but i will only be holding onto my condo for 1 more
> year so the savings up a couple grand upfront seems logical.
> Any suggestions are greatly appreciated as well as opinions on a no
> cost loan.
Posted by John Weiss on July 26, 2005, 9:10 pm
> Hi all.
> I have 36k in CC debt paying obscene finance charges.
> I also have 17k in a car loan
> I own a condo and want to take out some sort of home equity loan to pay
> off these debts.
> I have excellent credit.
Sell the car, buy a beater, and put the remainder toward the CC balance, highest
interest rates first.
Then shred all your credit cards. Find a "balance consolidation" offer at a
very low interest rate (REALLY EASY if your credit is "excellent"). Consolidate
the remaining CC balances into the new account, then shred the card.
Write out a budget (get professional help, if necessary), and put every dollar
beyond required [house, utility] payments and your essential living budget into
paying off the credit card balance. When it's down to 0, re-evaluate the terms
on that credit card, and find one with more reasonable long-term terms if
necessary. Ensure the limit on the card is $5,000 or less.
Live within your means.
> I am selling my condo in about a year where I will profit at least
> 125k. So I am able to payoff this loan on the sale.
Maybe, based on the current market; but, then again, maybe not...
> I was told a no cost loan would be ideal. There is not upfront costs.
> Yes, I will be paying slightly more per month because of a higher
> interest rate...but i will only be holding onto my condo for 1 more
> year so the savings up a couple grand upfront seems logical.
> Any suggestions are greatly appreciated as well as opinions on a no
> cost loan.
Don't do it!
The loan may cost you your house if you default. Based on your current
situation, it appears to be a rather high probability, since you apparently
cannot control your finances.
Find a reputable financial/credit counselor.
Posted by Charles Spitzer on July 27, 2005, 12:47 pm
>> Hi all.
>> I have 36k in CC debt paying obscene finance charges.
>> I also have 17k in a car loan
>> I own a condo and want to take out some sort of home equity loan to pay
>> off these debts.
>> I have excellent credit.
> Sell the car, buy a beater, and put the remainder toward the CC balance,
> highest interest rates first.
> Then shred all your credit cards. Find a "balance consolidation" offer at
> a very low interest rate (REALLY EASY if your credit is "excellent").
> Consolidate the remaining CC balances into the new account, then shred the
> card.
> Write out a budget (get professional help, if necessary), and put every
> dollar beyond required [house, utility] payments and your essential living
> budget into paying off the credit card balance. When it's down to 0,
> re-evaluate the terms on that credit card, and find one with more
> reasonable long-term terms if necessary. Ensure the limit on the card is
> $5,000 or less.
> Live within your means.
apropos article in today's paper:
http://www.freep.com/features/living/coddled15d_20050715.htm
>> I am selling my condo in about a year where I will profit at least
>> 125k. So I am able to payoff this loan on the sale.
> Maybe, based on the current market; but, then again, maybe not...
>> I was told a no cost loan would be ideal. There is not upfront costs.
>> Yes, I will be paying slightly more per month because of a higher
>> interest rate...but i will only be holding onto my condo for 1 more
>> year so the savings up a couple grand upfront seems logical.
>> Any suggestions are greatly appreciated as well as opinions on a no
>> cost loan.
> Don't do it!
> The loan may cost you your house if you default. Based on your current
> situation, it appears to be a rather high probability, since you
> apparently cannot control your finances.
> Find a reputable financial/credit counselor.
>
XML site map
> I have 36k in CC debt paying obscene finance charges.
> I also have 17k in a car loan
> I own a condo and want to take out some sort of home equity loan to pay
> off these debts.
> I have excellent credit.
> I am selling my condo in about a year where I will profit at least
> 125k. So I am able to payoff this loan on the sale.
> I was told a no cost loan would be ideal. There is not upfront costs.
> Yes, I will be paying slightly more per month because of a higher
> interest rate...but i will only be holding onto my condo for 1 more
> year so the savings up a couple grand upfront seems logical.
> Any suggestions are greatly appreciated as well as opinions on a no
> cost loan.