Should We Borrow On Our Home To Pay Off Debt?

Louisa is in Atlanta Georgia welcome to the Dave Ramsey show Louisa what's up hi Dave thank you for taking my call we do have a date for $60,000 and I would like to know if it is a good idea to get a loan against the house which is already being paid off not if we can help but I would avoid it what kind of dad have you got we have like $21,000 the balance on our car and then credit cards that uh that we have and actually of about $40,000 on credit cards yes okay how long have you been doing that recently we had yeah we use all our emergency funds viewed through a loss in our family so all the funds were gone and we have to get the credit cards and then you know stuff from the house that broke down and there are more than $10,000 so we had to have it that is the reason why we went up to up to $4,000 mmm so you guys all lose your jobs no okay so you had income coming in during this time I know it will be like about a thousand I mean sorry six thousand sixty thousand dollars a year between both of us I haven't just got a better income from his job okay well that's good news all right no I would sell your car okay I would not you've got a real mess with credit cards here I would cut them up and vow to never use them again no matter what happens and but if before I would borrow I wouldn't borrow on my house to buy a $21,000 car when I make sixty and essentially that's what you're asking me to do and so I would not do that I would probably move out of this car and downing car dramatically and then be able to and pay cash for whatever you move into and then let's attack the credit cards smallest to largest using the debt snowball in that order list them smallest to largest pay minimum payments on everything but the little one and attack the little one what what's concerning me is this okay and I want you guys to go back on dresses you don't have to answer me but you and your husband need to answer this question okay what are you gonna do next time there's a problem okay you got to have an emergency fund in place of three to six months of expenses once you get this debt paid off and what kind you know is the type of problem that occurred ever gonna happen again or was it just an unusual never happen again type thing or was this a thing that stuff comes up and we just instead of working our way through it and instead of limiting what we bought we just put I mean you're making 60,000 you put another 40,000 on credit cards so you had $100,000 problem I mean that done the sound right kiddo I don't think that happened as a matter of fact I'm questioning you so I want you guys to do some soul-searching because sometimes what happens is is that there's a problem in a family like someone's ill or there's some kind of a crisis and while that's going on we go do a bunch of other stupid stuff and then we blame it on the crisis but I bet you if you go back and detail out the $40,000 or the credit card debt that only a portion of it is associated with your crisis and that's what I normally find in 30 years of doing what I do so I really want you guys to look at that because I'm not positive I'm just but based on my experience that's what I think has happened

Channel: The Ramsey Show - Highlights

Views: 33,668

Keywords: Should We Borrow On Our Home To Pay Off Debt?, borrow against house?, home equity loan, money, heloc, home equity line of credit, mortgage, truth in equity, loan, getting a loan against your house, taking a loan against your house, borrowing money against your house, cash, against, dave ramsey, home equity loan to pay off debt, home equity loan dave ramsey, home equity loans explained

Id: zEKwpuktOZY

Length: 3min 57sec (237 seconds)

Published: Tue Jul 10 2018