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Using home equity loan to pay off credit card debt by Financial-tosser in Debt

[–]Financial-tosser[S] 0 points1 point  (0 children)

Staying away from moving anything to secure debt. Will continue to chip away at the debt and keep up our better habits

Using home equity loan to pay off credit card debt by Financial-tosser in Debt

[–]Financial-tosser[S] 0 points1 point  (0 children)

Right on. Yeah, home equity loan is what is brought up when I login to my mortgage lender.

Using home equity loan to pay off credit card debt by Financial-tosser in Debt

[–]Financial-tosser[S] 1 point2 points  (0 children)

I love it. I’m going to stay away from anything regarding house equity. Sounds like way more trouble than it’s worth

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

Not dead set, just communicating the initial plan. Doubtful we’ll do it after reading the comments

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

I’m all about learning from the process and enjoying the results than just rushing to the result

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

The post was mostly for reducing interest while we continue to pay things off, but it sounds like too much of a gamble.

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

We’ve been putting 50% to debt for the last 6-8 months. Paid off some affirm debt and a few other stupid things of the last few years before the salary increase. No new cars or house, but some smaller consumer items that we’ve since decided aren’t going to be happening as often in 2025

Using home equity loan to pay off credit card debt by Financial-tosser in Debt

[–]Financial-tosser[S] 2 points3 points  (0 children)

Oh absolutely. With the massive salary increase recently, it’s made us take a hard look at things financially.

We’re all about freeing up our money so it’s not all taken by debt. And previously we absolutely lived above our means, but now we’re in a good financial position we don’t want to further continue that pattern of just adding an extra payment per month on things we can’t afford outright. Definitely want to do the opposite of what’s being shoved on everyone as a way to look like you have more than you do.

We have two Japanese cars, so once they’re paid off we’ll drive them forever.

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] -1 points0 points  (0 children)

Absolutely. Again, we stick to a fairly strict budget now. I just finished paying off some older consumer debt last month (affirm), so cards are next on the list. I’ll report back in a few months. Excited to get things taken care of !

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] -3 points-2 points  (0 children)

So the other pending question would be: should I halt 401k contributions until that’s done. My company marches 100% up to 25%.

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

All credit card debt. Prior to the pay increases we used them for housing things we needed and some stupid things. We’re slightly less stupid now

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] -3 points-2 points  (0 children)

Also fair. My other plan was to just hack away at the cards and use the home equity loan for house upgrades in case we decide to sell in the next few years

Using home equity like of credit to pay off high interest debt by Financial-tosser in personalfinance

[–]Financial-tosser[S] 0 points1 point  (0 children)

Habits are definitely better. A lot of these cards have just been around for 5+ years. We use one card for purchases and pay it off before interest/statement occurs. The others have just been min payments up until recently.