Home equity loan

Is your LOC a home equity line?

Q: Is your LOC a home equity loan? You did a good thing to put those cards away. Is your monthly debt more than your monthly income? If it is you need to find a way to increase your income or decrease your debt (no brainer there!). Do you and dh both work?

A: Yes, the LOC is a home equity line, and we do pay out each month more than we take in. Even if we cut down to the minimums each month, it’s still more than we bring in. I’ve talked about getting rid of the cable (both tv and computer) and my hubby practically hyperventilates! It would be a big deal for him to give up the tv (sports nut) and it would be a big deal for me to give up the cable line for the computer, so I figured at least it would be even. He balks at it, but it’s much harder for him when I ask him if it’s worth $1,200.00 a year.

And yes, it is a no-brainer to increase income or decrease debt…. unfortunately, no-brainers don’t always get followed effectively! My husband works in accounting/finance (oh, the irony!) and for the most part, I’m a SAHM. I am a Southern Living at Home consultant and make a bit of money with that, but our income is primarily from hubby. Neither he nor I want me to go back to work, but at least we know we aren’t down to our last penny with no options.

HEL loans are explained in this video:

I am in the same boat as well. I am a SAHM and the only way I can work is to find a job that I can only work during school hours. Unfortunately, jobs like that are hard to come by, but I am still trying. It is not worth sending my kids to daycare after school bc it will cost $500 a month and I will only be making about that much:( Right now I am selling some things on ebay. Things that I never use, clothes still with tags that I have never worn, etc. It is helping and giving me some extra $$ to pay on CC’s monthly.

Hello fellow debt haters

Q: I have read through some posts and am glad I have found this place. My hubby and I are working at getting out of debt. We have listened to Dave Ramsey for a couple years and have gotten some bills paid off and cut up the credit cards so that we don’t get in further but its been slow going. For some background this is where we are right now…

  • 4800 to credit card
  • 6500 car no.1
  • 8500 car no.2
  • 9500 2nd mortgage

We aren’t behind or anything at this point, but still live basically paycheck to paycheck. I am just needing some motivation and accountability for sticking with my budget and getting more focused. Hopefully chatting with people in similar situations will help.

A: i have a question….. what’s a 2nd mortgage? is that a home equity loan?

Good luck on your debt payoff….. we aren’t behind as well..just trying to get it paid off…. not living pay check to paycheck so much but that’s because my hubby is deployed and the combat pay helps!

Q: Yep, our second mortgage is a HEL. When we moved into this house it needed alot of work. We had planned to work on it when we had the extra cash. Of course we got pregnant with baby number 3 and decided we needed new carpet right away and to pay off my dh’s truck and get a cheaper one. But after riding in that old truck for a year we decided we needed a more appropriate family vehicle (enter car payment no 2 again). It makes me kind of crazy knowing that essentially I am paying for 3 vehicles one of which was sold three years ago, carpet that is already getting worn out due to a steady flow of family traffic, and still paying for Christmas five years ago on credit cards. UGH STUPID STUPID. LOL

I am very glad to hear you plan is working so well. Its nice to start digging out of the dark hole and finally see light.