Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
9/19/2017 7:27:10 PM
Posted: 2/12/2006 9:58:26 PM EDT
If you could pay off your credit card and a home equity loan by selling some of you guns would you do it?

This is a question that I am contemplating right now.
Link Posted: 2/12/2006 9:59:15 PM EDT
Not if I was making all my payments ok, and had a plan to finish paying them off in a timely manner.
Link Posted: 2/12/2006 10:00:01 PM EDT

Originally Posted By sWs2:
Not if I was making all my payments ok, and had a plan to finish paying them off in a timely manner.



werd
Link Posted: 2/12/2006 10:07:05 PM EDT

Originally Posted By sWs2:
Not if I was making all my payments ok, and had a plan to finish paying them off in a timely manner.



+1
Link Posted: 2/12/2006 10:08:35 PM EDT
All depends on your interest rates.
Link Posted: 2/12/2006 10:13:51 PM EDT

Originally Posted By Zippy_The_Wonderdog:
All depends on your interest rates.


Agreed. You may save enough money to buy more guns later.z
Link Posted: 2/12/2006 10:19:22 PM EDT

Originally Posted By zoom:

Originally Posted By Zippy_The_Wonderdog:
All depends on your interest rates.


Agreed. You may save enough money to buy more guns later.z



werd
Link Posted: 2/12/2006 10:41:15 PM EDT
OK, let me throw this into the equation.

I have 2 mortgages on my house. 1 is the regular mortgage and the other is a home equity loan. I no longer live in this house. I was forced to move to another state due to a declining local economy and lack of jobs. The economy where my house is located is in complete shambles. Property values are declining rapidly and I owe more on my house than it can be sold for in this market. The property taxes are also going up. As a result I have been paying $1,500 per month (which recently went up to $1,600 per month) on a home that I no longer live in and cannot rent out (at least not for any reasonable amount of money). If I pay off the home equity loan then I have 2 options available with the house. First, I can reduce the asking price by the amount of the home equity loan and continue trying to sell it. Second, I can deed it back to the bank holding the first mortgage in lieu of foreclosure. Either way I can stop making the $1,600 per month payment (mortgage, loan, utilities, taxes and insurance) and that would be a huge cost savings for me.

As for the credit card...if I can dump the house then I can start using the money that I was paying on the mortgage to pay off the credit card and have my credit card debt completely eliminated within 3 months. Then I can save both the money I had been spending on the house and the money that I was paying to the credit card company.

If I pay off the home equity loan right now then I would exhaust my entire savings. However, if I sold a couple of guns then I would have a few grand in the bank as fall back money until I was rid of both the house and the credit card. So, I am seriously considering selling a couple of guns for this purpose.

Does that change your opinons any?
Link Posted: 2/12/2006 10:43:12 PM EDT
only if I were desperate
Link Posted: 2/12/2006 10:44:13 PM EDT
I'd hang on to the guns and worry about the interest later.
Link Posted: 2/13/2006 4:22:26 AM EDT
I wouldn't, couple reasons:

1) yeah sounds tempting you can write off the interest, blah blah, but ask yourself what happens if you default on a Home Equity Loan vs defaulting on a credit card? Hint, in one of those cases you could lose your house

2) if you pay off your credit card chances are you'll rack up the balance again and have used up your home equity and be back in the same position you are now. I find that if I have a balance on my credit card I tend not to charge things to it, so in a sense, it tempers my spending.
Link Posted: 2/13/2006 4:28:41 AM EDT
If your house is in the metro-detroit area as I suspect it is, I would do WHAT EVER IT TAKES to dump it off now. Property values are going down like it is nobodies business around here. My GF talked to a realter a couple of weeks ago, and asked how the buisiness is, as we have read many stories about the failing economy etc. in the area. She said that it is taking a lot of time to sell a house right now, and that it will be dirt cheap to buy a home in a year or two.

Do what it takes to get rid of your home. It is taking over 1 year to sell those 1 million dollar mansions out here in rochester and oakland township. I hope your house is a little guy in hazel park or down river.
Link Posted: 2/13/2006 4:33:24 AM EDT
Sounds like a really good time to sell whatever you have to in order to get out of that shitty situation. Put the money into the home equity loan. Pay off the CC as you can. DO NOT use the CC; it'll only drag you further down into debt.
Link Posted: 2/13/2006 5:15:56 AM EDT
CCs - yes, assuming you're not on a 0% or low fixed interest rate card. I have enough guns to be able to afford to sell off a few to avoid paying the exorbitant interest rates. If you're looking at anything over 10% APR (IMO) you should pay it down asap!

HELOC - depends, but the answer is probably no (unless your HELOC is at a high rate due to recent interest rate increases).
Link Posted: 2/13/2006 5:59:00 AM EDT
I would do a deed in lieu of foreclosure on the first if the bank will except it, they don't have to. And payoff the second with savings. I would contact the bank and tell them I am not making another payment and wish to do a deed in lieu and don't make another payment. It will negatively effect your score alittle, it will get the bank moving.

$4,500 in credit card debt isn't hudge, pay it off over three months, if you need any emergancy money put it on the card and sell a gun.
Link Posted: 2/13/2006 6:06:33 AM EDT
[Last Edit: 2/13/2006 6:07:40 AM EDT by criley]
CC DEBT - probably costing you big time. If you have assets to liquidate and pay it off, do so. Especially true if the assets are not appreciating.

HOUSE - since this is a money losing issue as well - with the home depreciating in value and the taxes increasing to boot, pay off the second mortgage (using non-appreciating assets if possible), sell the house asap and improve your cash flow. If you do this you can use that $1600 per month to add to savings.

DON"T USE CREDIT CARDS unless you are going to pay the balance off each month!
Link Posted: 2/13/2006 6:16:18 AM EDT
I voted no because I don't have any guns that I don't shoot or would consider getting rid of - unless I was unable to pay my debts.
Link Posted: 2/13/2006 6:26:09 AM EDT
While I voted "No," ARFCOM is probably not the best place to ask that question. It's patently obvious that we would advise you not to get rid if the guns. You need more objective advice. Try a home ownership forum, if there is such a thing.
Top Top