Borrowing money to pay off other debt is a temporary fix. I wouldn’t borrow from your home unless it’s a last resort. Focus on cutting costs and paying down debt. If all else fails, bankruptcy might give you a clean slate.
Try working with a nonprofit credit counseling agency instead of borrowing against your home. They can help lower your interest rates and set up a payment plan. A 12% loan against your house might cost way more in the long run.
If you have equity in your home, bankruptcy might not be an option. Talk to a lawyer—they’ll help you figure out what’s possible.
Never turn unsecured debt into secured debt. It’s a risky move.
You can file for bankruptcy without including your home or car if you’re up to date on payments.
Mai said:
You can file for bankruptcy without including your home or car if you’re up to date on payments.
That’s not accurate. Bankruptcy laws don’t work like that.
Mai said:
You can file for bankruptcy without including your home or car if you’re up to date on payments.
That’s not accurate. Bankruptcy laws don’t work like that.
It worked for me when I filed. Maybe it depends on the state.
Bankruptcy might be the clean start you need. Sure, it hurts your credit for a few years, but you can still live your life. Most people won’t even know unless you tell them.
Could you get a loan to pay off the 401k loan and then take out a new 401k loan? Also, look into nonprofit credit counseling agencies for full debt consolidation.
Fraser said:
Could you get a loan to pay off the 401k loan and then take out a new 401k loan? Also, look into nonprofit credit counseling agencies for full debt consolidation.
If you do this, make sure to pay off the first loan immediately with the new loan to avoid more issues.