Posted by Kristy-AZ on July 19, 2002 at 03:57:56:
This is just my opinion. you are trying to rob Peter to pay Paul. If you got the Home equity loan, would you be raising the rents on your tenantS?
I have been in Real Estate for over 10 years. As an agent, I never knew when my next check was coming in. BUT…we have several credit cards with high credit amounts. We had to go almost 6 months one time without a check from me. (OUCH) I paid my bills with the checks from the credit card companies. When on company offered a lower interest rate, I switched my balances to that card. I currently have one at 1.9% for a year. Once I got SMART and started investing, I was able to send BIG payments to my credit cards to get them paid off. Now most of the card companies have tripled the amount they will extend to us, I saved my credit because I paid my bills on time, and if I need cash to buy a house or a down payment I have the credit line on my cards.
Now, I wouldn’t do this if you don’t have a game plan to get them paid off. I knew I would be getting some clients and making some sales, plus I was studying the investing area. Plus I was considering taking on a job as a night waitress somewhere. My plan was to dabble in investing just to pay off the $35,000 I racked up on my credit cards. Turns out, it was so fun that my husband just quit his job of 8 years to do this full time and I don’t have to go looking for clients. I list all of our properties. Our credit cards are paid off (mostly) we like to spend, so they may never be paid off fully, but the point is, we do not owe $35,000 anymore!
Just be careful and have a plan to pay off whereever you get the money. No matter if it’s a home equity or credit cards, you are still going to have the monthly payments to deal with! If you have absolutely no income, I would suggest finding a rinky dink job to cover the payments of any money you borrow.