Home Equity Loans Are Stupid On Steroids

Next Steps:

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

Products:

[JIMDAVIS-zh]

If you can’t afford a steak in an expensive steakhouse, don’t go !

[EvalineLundon]

my gym buddy told me about steroxxe and now I won’t use anyone else.

[TheWhiteWolfFang]

Moved it from 20-25% to 3-5% is a pretty good idea

[davidtuttle]

I paid off my credit card debt...with my debit card acct. It was slow and painful. But the lesson is learned. Never spend what you dont have. Beans n rice is a perfectly reasonable diet when times are tight. Home brewed coffee is ALWAYS better than Starbucks.

[badbowties]

Tbe bigger problem is when people do this and then max all the cards again, so now they're back at square one but with owing more on the house

[shroomspls]

He went from 19.99% APY to 4-7% APR on an asset backed long term note. If he can’t pay it off quickly then it’ll resolve when the house sells. Lots of people do this who can’t make ends meet and it’s not stupid at all. What’s stupid is staying in 20% credit card interest because of your pride, meanwhile ruining your credit by never paying it off.

[Fishyalex]

Idk, it sounds like debt consolidation to me. If they're paying a ridiculous 19% on a card, move it to their 4.5% mortgage, and then cut up all their credit cards, then that seems like the best move for them

[ralphpaul]

He's got a point, but it's not so stupid if you move a debt with a high APR to a lower APR as long as you devise a plan to pay off the debt.

[kirstenpeterson]

Plus, taking unsecured debt and turning that into an instrument that threatens an asset is CRAZY.

[SophisticatedTeacher]

Stupid on steroids
I haven’t heard that in years. 😆

[cooperlarsen]

Yes. It does move it. But, the lower interest rate is worth for large sums.

[kitcatkit]

I transferred my 19% cc debt to a 0% cc and paid it off over 18mo. I don’t care what Dave says that move saved me thousands and I’m debt free now. Most of that debt was medical expenses anyway

[dianabialaskahansen]

If you can't pay it all off right now, reconsolidating from 25% to like 4% is a good idea, provided you pay off your debt afterwards.

[jaxsaint]

Straight facts!! In Florida the homestead exemption forbids unsecured creditors from placing liens on your house. So why roll your unsecured debt (credit cards) into your protected home. Handle that credit card debt in other ways.. don’t roll it into your mortgage.. at least if you live in Florida.

[Onlyjenderz]

Company I worked for in Ny went out of business, went back to college on my GI bill. Credit cards got up to 30k.
After I got my degree, got a new job paid credits cards off using the snowball effect.

Kept one card, been living debt free!!
No longer a slave to the master

[j.]

Yes, I find that crazy too. You should never put your home in jeopardy…..

[estebansanchez]

“I took out the trash. See I moved it from the kitchen trash bin to the guest room trash bin “. 😂

[Mr.Z]

Peter and Paul are still scratchin their heads! 🤣😆😆

[robinrubendunst]

Well, if the heloc is lower interest and the cc balance being paid off (transferred) is really high and at a high interest rate, you’ll be able to pay off the heloc faster.

[alexharker]

Not only that but you’re moving unsecured debt to debt backed by your home. If you can’t pay the unsecured debt, your credit score drops. If you can’t pay your secured debt, you lose your house. Not a very good trade, is it?