Reply
Established Member
Justin93
Posts: 16
Registered: ‎12-18-2012

95% Home Equity

Hello,

 

A long story but for everyone's sake I will try to make it short. I currently have roughly 17-20k in debt on cc's and it just seems that I am getting nowhere on them. I really considered filing chap 7, but I know if I could just roll everything into one payment I know pay it off. I know Navy Federal does 95% Home Equity loans, but I didn't know what their credit requirments were? Do you guys think it is a good idea to roll that debt onto your home? Or should I just take the dive into bankruptcy and restart everything?

 

Thanks for any insight you can provide!

 

Justin

BK discharged 06/13 Eq 585, Trans - 564 (May '14 648,632)
Barclay Rewards card - $2500 CL (Opened Dec 2013)
NFCU Cash rewards - $5000 CL (Opened Dec 2013)
NFCU secured - $500 CL (Opened June 2013)
Fingerhut $400 CL (Opened Oct 2013)
Victoria Secret $500 CL (Opened Nov 2013)
Community Leader
Senior Contributor
StartingOver10
Posts: 3,824
Registered: ‎03-06-2010

Re: 95% Home Equity

Filing BK over $20k is like hitting a fly with a sledge hammer. It is the wrong tool to use and will cause more damage than help.

 

Don't get me wrong, there is nothing wrong with filing BK in the right circumstances. But $20k worth of debt doesn't warrant a BK when you can work your way out of it with a plan.

 

Also, moving $20k to your home is a receipe for disaster. Go to the Dave Ramsay website for ideas on working your way out of this $20k. It has an added benefit of teaching you methods to stay out of debt.

 

Can you pick up a second job or sell some items around the house to help make a dent in the debt?

Regular Contributor
cclee
Posts: 223
Registered: ‎08-10-2012

Re: 95% Home Equity

Completely agree with StartingOver, although it's hard now, it will be uncomfortable enough to keep you from doing it again, wrapping it up into a mortgage is the easy way out.  You can do this, cut things out, be uncomfortable.  I also don't have a problem with BK, but for 20k, it's not worth it.  Love Dave Ramsey as well, and a Suze Orman fan.  You know the saying "Nothing taste's as good as skinny feels"?  Well nothing feels as good as digging yourself out of debt and staying out.. don't live beyond your means and you will live better than most.



In The Garden Until 11/01/15 - Last App 11/03/13

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+