Posted by StoneDing 2 years ago In:

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StoneDing
StoneDing Asked:

I have a lot of home equity, should I take this to pay off my debts?

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DB Lady
DB Lady Answered:

Please read the books of Dave Ramsey.

Go to Daveramsey.com.  He has helped a lot of people.

Be honest and be true to yourself.
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mcarthur
mcarthur Answered:

Depending on your situation, it may or may not be advisable to use the equity in your home to pay off your debt. This can put your home at risk by taking out a home equity loan.Learn more about this to find out if this option is appropriate for your situation. http://www.totaldebtservices.com/unsecured_debt.asp

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gary999
gary999 Answered:

The problem with debt consolidation is that it's not a permant fix unless you change your financial thinking. Let's imagine you use your home equity to pay of credit cards, what's to prevent you from being in the same situation again. Unless you change you're whole spending philosophy you're likely to repeat this problem, leading you to refinance over and over until you have no equity in your home. I agree with DBL (DBL, three in a row, is this a new record?) to give a few minutes to Dave Ramsey or consult with a financial advisor prior to making this decision.

"I've heard you're a low down yankee liar!"
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Elden
Elden Answered:

NO, NO, NO. NEVER. You never use your equity. If most people had left the equity alone they wouldn't be losing their homes now.  NEVER, I stress NEVER, take equity out of your home. Most people when their house goes up in value think they have cash in the bank when they only have it in paper. It's never money until you sell it. If you raise your payment each time you remove money and the market takes a dump, like it did, you still pay for the value you put on it with re-fi. Ask any proffessional Real Estate person and they will tell you the same. If they don't then they are not your friend.

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Debt Guy
Debt Guy Answered:

Using home equity takes your unsecured credit card debt and turns it into a secured debt.  If you fail to make your payments you could them loose your home.  Be carefull!

Do you need <a href="http://www.budgetplanners.net/" rel="nofollow">debt consolidation</a> help or advice? Get your <a href="http://www-free-credit-report.com/" rel="nofollow">free credit report</a><a href="http://www-free-credit-report.com/" rel="nofollow"> </a> and credit score now.
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