i recently purchased home with 2 loans. The first is at 5.75%.The second is at 6.75%. I have alot of credit card debt. I am strapped financially. I have 40,000 left of usable equity in my 2nd (leaving 10% in). I recently have 2 deragatories on my credit rating for my 2nd. Should I take out the remaining $40,000 in my 2nd and consolidate some of my debt, pay outstanding taxes due and try and hammer away at the rest of the debt slowly. Or should i protect my equity in case of emergency job loss, declare bankruptcy and protect my home. Please help. I am about to sign on the dotted line out of desperation for a loan that will charge 10points due to poor credit. My sense is instead of pulling more equity...to move toward bankruptcy and save equity for emergency in case of job loss. My current credit card, and tax debt is 60,000(16,000 due to IRS which bankruptcy will not pay for). Not including my home of course.
2006-10-20
20:10:26
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6 answers
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asked by
Anonymous