Home equity loan vs loan agains retirement stocks?

Question

We owe $18,000 in credit cards and the 0% interest is about to end. We could get a home equity line of credit with a pretty low monthly payment or my husband can borrow from his stocks and the interest charged is paid back into his retirement account. The only problem with this is the payment is going to be higher at 9.25%. I know with the other loan we would be paying the interest to the bank but the payment is more affordable and I could pay extra when possible. I just don't want to be strapped for money every month. Thanks for your help.

Answer 1

NEITHER ! ! !

Those kind of loans are for when you need life saving surgery and don't have insurance .

Do not know what kind of lunacy got you into $18K of credit card debt ,
But suck it up , get a 2nd job or 3rd , and pay them off from work .
Anyone with $18K debt was strapped for money when they started down that road ! Why else would anyone jump in that money sewer ?
News flash , you are 1 blink away from bankruptcy material .
A HELOC or retirement lien could finish the march for you .

A HELOC or retirement lien for credit cards is turning over your home to the devil and only the UBER stupid do it .
They are later know by another term , HOMELESS .

If there are 2 brain cells left at your place ,
Use them to find more work , instead of debt with % .

>

Answer 2

I'd look for a couple of options before doing either of these things.

1. Look to transfer the balances to other lower interest credit cards if you have them. If not, You can visit bankrate.com and they will give you a list of the credit cards that have higher limits, no annual fees and solid balance transfer options. you may not get approved for a high enough limit on one single card so you may have to get two or three. Be careful that you don't apply for more than this because the additional dings will affect your credit. This is a good alternative because you don't have to use your house or stocks to secure a loan and the rate will probably be just as good.

2. If you aren't able to use credit cards, why don't you take a look a refinancing your house before getting a home equity line. Rates are better than a home equity line and you may be do for a refi anyway to lower your payments and get the tax deduction.

3. If a refi doesn't make sense, then do the HELOC.

4. Don't do a loan on your retirment funds, stocks or 401k... the amount of money you could potentially lose if you can't pay it back is astronomical and you will do irreversible damage. You're better off losing your house before retirment funds... file for BK before that.

Answer 3

neither is good . ur a nightmare looking to land. visit daveramsey.com to learn what u haven't and the credit slavers pray you never do or worse - apply to ur life.
how to own ur money.