topic Re: Question for you news junkies --article advising not to pay off HELOC's? in Credit in the News

Question for you news junkies --article advising not to pay off HELOC's?

haulingthescoreup — Tue, 16 Dec 2008 00:14:27 GMT

This past weekend, I was zipping through my usual collection of websites, e-mails, and pop-up links, and one said (in essence), don't pay off (possibly down) your HELOC, because it might wind up getting closed. I'm reasonably certain that I didn't dream this, but I skipped it and then couldn't find it when I wanted to.

Unfortunately, I was hunting something, and I zipped through a lot of sites. Most likely sites would be CNN/ Money, WSJ/ Market Watch, and Motley Fool; but really, there's no telling where I came across it. No luck with Google so far.

If anyone saw this article and remembers where it was, if you could share it here, my sanity and I would truly appreciate it!

Re: Question for you news junkies --article advising not to pay off HELOC's?

Junejer — Wed, 17 Dec 2008 06:55:45 GMT

HTSU, I got a call from one of my clients today. She is on my debt elimination program. She paid off her debts and the HELOC to zero a couple of months ago. She then, went to write a check off of the HELOC and got it returned due to the account being closed. She was absolutely hysterical. Her scores are in the upper 700s and she has had the HELOC for a few years. While on this program, the HELOC revolved beautifully, the way a banker would like it to do. This is crazy.

Re: Question for you news junkies --article advising not to pay off HELOC's?

haulingthescoreup — Wed, 17 Dec 2008 14:49:10 GMT

Well, I'm in no danger of paying it off any time soon, lol, but I figured that was what was happening. If they're dropping unused CL's on CC's, it would make sense that they're doing the same on HELOC's.

Since mine is interest-only for 20 years, and the interest BEFORE the latest fed funds rate cut is at 3.05%, I'm thinking that I need to be paying interest for now, and re-directing the principal payments to a money market account or CD's. I should be able to get the same or better rate, the money will be there for repayment, the HELOC will stay open, and my options will remain open. I think.

Sorry to hear about your client! When the day comes that I can pay it off, I'll call USAA first and ask if they're doing that.

Re: Question for you news junkies --article advising not to pay off HELOC's?

Anonymous — Wed, 17 Dec 2008 16:42:51 GMT

I'm sorry to hear about your client, Byrdman.

That is truly a shame and there's really no reason

for that to have happened. You'd think that banks

would be rewarding their best customers instead

of treating them like their worst customers. But it's

obvious that logic has been thrown out the window

where banks and their money are concerned.

Banks have forgotten a basic principle of human behavior:

We always remember those who have helped us thru the

tough times, but we never forget those who did not. That lapse

in memory is going to come back and bite them in the pocketbook.

Hauling, you are in GREAT shape!!!! Most major banks have dropped

the prime rate from 4% to 3.25%. For you, this should mean that

your HELOC rate will drop to 2.3% ( 3.05 - .75 ) . You can't beat

that with a stick...

CanDo

"The right attitude is everything"