Easy Home Equity Loan

1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

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I was recently divorced, my daughter is in college. I fell behind on some payments on my credit cards in an effort to support my daughters educational needs. I have two homes with approx. ,000.00 worth of equity. I requested from a local bank where i already have a note to borrow approx. ,000.00 to pay off all cards and other debts. The banking institution refused my request, stating that i have some delinquent payment issues, on cards, etc. He stated since i have a note with them the only thing he can do, is re-adjust my payments on that particular note i have with them. I am new at this type thing, could someone please give me some advice? I am just trying to bail myself out of the hold that i am in, to make a life better for my daughter.

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I am a solvent, stable, well-employed, credit-worthy individual. I bought a house 7 years ago which has more than doubled in value due to the market I’m in and of course, location-location-location. I have about k of debt (credit cards, automobile). To further increase the value of my home, I want to renovate my kitchen and bathrooms to the tune of about ,000. Here’s my big question: I’ve applied and been approved for a k home equity loan to finance the renovations and pay off the auto and credit card debt. Am I turning down the wrong road? Am I asking for trouble? I really, really hate debt. My home mortgage is [was] low and now I’m adding back another k.

I opted for the home equity loan vs. line of credit so that I got a fixed interested rate, which was important to me. I will pay off the home equity loan long before the term is up.

The return on the improvements will definitely more than double my investment in upgrading. Is this the right thing to do?

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Over the last few years, my husband has been laid off numerous times. Each time, I had to take out credit card cash advances to keep us afloat. In addition, we had refinanced several times and took out a home equity loan so we now owe more than our home is worth. When we are both working, we can pay our bills but with him laid off again, we are drowning. I can no longer take out any more cash advances. I have been paying my credit cards on time because I don’t want the interest rates to jump up but then I can’t pay my mortgage on time. I’ve been paying it right before the 30 day mark so it won’t show up on our credit reports as a late payment. I don’t think I’ll be able to do that this month. What should I do? My mom thinks we should file bankruptcy but I really don’t want to do that.

Should I continue to pay my credit cards on time and pay the mortgage late? Possibly let the house go and rent something cheaper?

Should I pay my mortgage on time and pay the credit cards late? Possibly file for bankruptcy? We have about ,000 in credit card debt.

I am so stressed out by the mess that we’re in. We have 2 children in college that will be depending on us at least for the next year. I am mentally, physically and emotionally exhausted.

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We owe ,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.

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I was laid off in Oct of 08 and have yet to find a job. Although I’m making my payments on my credit cards I’m making really no headway on getting them paid off. I’m only 7,000.00 in unsecured credit card debt which is nothing to some and a lot to others.

My question is will banks loan money to people with no job and no home for equity loans. All I have that is paid off is a 2002 mustang. I want to do what is best for my credit but at the same time either get a lower interest rate or consolidate or ultimately file bankrupt. My interest rates are very high on the credit cards because of default on a couple late payments.

Desperate times call for desperate measures. Any suggestions?
My real concern is that I am unemployed and no one will give me a loan or does this matter?

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Im not quite sure if I should be going to a mortgage broker to apply for one, or just go to each bank individually? Also, are there any out there that do not have a repayment penalty? I am also assuming that once the property sells the loan needs to be automatically repaid.

I would also like to know how this will affect my credit score. Is it better to have an X amount on credit cards, or have that same amount on an equity loan.
Thanks
I already know the whole "you shouldint have gotten yourself into debt" speech. My husband and I paid for our own wedding, therefore the debt.

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I have approx. 40K between 4 credit cards that I had before I was married. These credit cards are in my name only, not my husband’s. I have always paid my debts on time and have never been late until the past few months. I am now past due 30-60 days and now owe late fees and over the limit fees and can’t even afford the minimum payments any longer. I have been basically sticking my head in the sand about my financial situation for almost 2 years and borrowing from Peter to pay Paul.

My husband and I jointly have a home loan with a balance of 92K and a home equity loan with a balance of 30K. Our home is worth about 120K so we have no equity. We are current and have never been late on our mortgage loans. We live in Indiana.
My husband has a car loan in his name only. It is current and have never been paid late.
My husband has 2 credit cards with a balance of 11K. These are current and have never been paid late.

I now only work part-time making approx. 0-400 gross per month. I am trying to also substitute teach to make more money.
My husband works full-time and this is how we afford to make our mortgage payment, car payments and his credit card payments on time. We are trying our best to make certain his credit stays good.
My husband has a credit score above 680. I believe mine was 640 until the last few months – now I am sure mine is terrible due to my lack of payments.

I am looking for advice. I have tried to negotiate with my credit card companies and offered to send as much as I can until I can find a higher paying job/more hours. However, they are not agreeing to this and won’t stop the fees/high interest rates from accumulating. I almost feel like it is pointless to send anything because my balance just gets higher after sending a payment.

I definitely want to pay my obligations. I have looked into credit counseling but until I have more income, I can’t afford to make the kind of payments that is required. One counselor suggested that I file bankruptcy individually but I don’t know if that is a real option since I am married. My husband’s credit is perfect and I don’t want to risk his credit.

If I can/should file bankruptcy as my only option, can I still pay back my debt – just on my own terms that I can afford?

If I don’t pay my credit cards, what will happen? Can they take my house or affect my husband’s credit? If they sue me, will the court allow me to make payments that I can afford?

I know this is a lot of information and questions. I truly appreciate your help!!! The stress of this is killing me. I am so tired of worrying.
I have twins so it is tearing me apart to have to put them in daycare in order to work full-time until they are a bit older. Plus, by the time I pay for daycare it’s hardly worth it.
Marq suggests ignoring the calls, etc. But won’t the credit card companies sue me and then I’ll even owe more? If they do sue me, can I get my house?

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