Home equity loan to pay off...

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cards25
 
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Home equity loan to pay off...

Postby cards25 » Sat Mar 07, 2015 7:56 pm

I own my home. It's paid off and valued at 225,000. I have 30,000 in cc debt and 13,000 among three personal loans. My credit score is drastically dropping fast due to my high balance to limit ratio, it's currently around 650. Among the loans and the cc payments I'm paying 1400 a month. My cc have high aprs so I'm barely making a dent in the balances. I'm drowning and never have any extra money once I've paid my payments and my other living expenses and bills. I am thinking of taking a home equity loan of about 65000 to consolidate all my cards and loans and also remodel my house a bit. Also by the end of the year I will need to finance a new car, so I need my credit score to improve so I can be approved for a car loan. What is the process and honestly what are ur thoughts? Advice? I am just now at the point of self realization, I am ready to stop using the cc and maintain a life within my means. It's taken me a long time to get here, obviously. Please help.


daniel2304
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Re: Home equity loan to pay off...

Postby daniel2304 » Thu May 07, 2015 12:48 pm

I would call to ask creditors to reduce the APR first. About home equity loan, I'm not sure but the principle is taking a lower rate loan to pay for a higher rate loan remain unchanged under any circumstances.

Most of creditors might deny to lower APR but if you sound sincere and desparated, eventually hint about bankruptcy option, they might work with you. But that's always the last bomb to drop.
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TheLethargicAge
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Re: Home equity loan to pay off...

Postby TheLethargicAge » Thu May 07, 2015 6:48 pm

cards25 wrote:I own my home. It's paid off and valued at 225,000. I have 30,000 in cc debt and 13,000 among three personal loans. My credit score is drastically dropping fast due to my high balance to limit ratio, it's currently around 650. Among the loans and the cc payments I'm paying 1400 a month. My cc have high aprs so I'm barely making a dent in the balances. I'm drowning and never have any extra money once I've paid my payments and my other living expenses and bills. I am thinking of taking a home equity loan of about 65000 to consolidate all my cards and loans and also remodel my house a bit. Also by the end of the year I will need to finance a new car, so I need my credit score to improve so I can be approved for a car loan. What is the process and honestly what are ur thoughts? Advice? I am just now at the point of self realization, I am ready to stop using the cc and maintain a life within my means. It's taken me a long time to get here, obviously. Please help.


Get a Home Equity Line of Credit, not a Home Equity Loan.
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CarefulBuilder14
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Re: Home equity loan to pay off...

Postby CarefulBuilder14 » Thu May 07, 2015 8:20 pm

What recourse can the lenders take for the personal loans? Why put a home needlessly in danger (which is what it sounds like the OP wants to do?

I know this thread is old and the OP probably gave up on the prospect of getting help here. Still, it may be helpful to others.

We'd need to have an idea of the OP's income to know how manageable the debt is.
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