Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Personal Finance and Investing

Happy Hoosier

(8,559 posts)

11. This may be OBE, but...

Reply to groundloop (Original post)

Tue Dec 3, 2024, 09:04 AM

Dec 3

Be careful of paying unsecured debt with secured debt! If she defaults on credit cards, it hurts her credit. If she defaults on a HELOC, she loses her house. Given she runs an unpredictable business, that's a real risk. If we have a economic crisis, her business could take a nosedive. It's risky. I'd persoanally NEVER use a HELOC for this kind of thing without a very secure job.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

12 replies

= new reply since forum marked as read

Highlight:

Daughter's Credit Card Debt [View all] groundloop Nov 8 OP

3 years ago, my adopted daughter came to me with a similar problem UpInArms Nov 8 #1

A home equity loan would certainly cost less interest if she has a good credit rating and can get one. Lonestarblue Nov 8 #2

Home equity line of credit is one way to go but, Quakerfriend Nov 8 #3

She's already put in the paperwork to substitute teach...... groundloop Nov 8 #4

Excellent! I hope she can pay it down quickly!! Quakerfriend Nov 8 #5

A quick look at a credit app revealed that a $25K, 15 year fixed rate loan would cost about $250 a month. BobTheSubgenius Nov 8 #6

I do have a quibble with her paying off the highest-rate card first.... lastlib Nov 8 #7

This is old now, but wanna hit this... Happy Hoosier Dec 3 #10

The first question I would ask is this; A HERETIC I AM Nov 9 #8

And one other thing; A HERETIC I AM Nov 9 #9

This may be OBE, but... Happy Hoosier Dec 3 #11

Along with paying off that debt, PoindexterOglethorpe Dec 5 #12