Take Out a HELOC to Pay Off My Debt? 

I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.

I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured some money in value stocks and digital asset, i accrued over $80K in dividends last year

I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

I have “Sonya lee Mitchell” as my investment manager. She has a solid reputation when it comes to diversifying portfolios and making. Them less vulnerable to market downturns. She may be a name you are already familiar with from Newsweek.

She looks well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

Yah because he knows it already the guy will not listen

He’s been saying that for decades

@pinned by The Ramsey Show-Highlights Stop spamming Ramsey posts.

best comment ever

I remember the first time I heard that too.

You must be new here. Welcome

It's lower interest because it puts your house up as collateral . If there's any risk that you can't pay it off , I would keep it unsecured. Don't risk your home

Yup! Well said!

That is SO insulting! My husband and I had debt because we were supporting my mother and my husband ended up with terminal cancer! Try having a $20 dollar copay for medicine and having 10 prescriptions every month at the same time you're off work because you found out you're looking at a stem cell transplant that will take you off work for at least a year! We incurred debt that lasted until after my husband died. You're an idiot!!!!

@@Savannah-ed4rv, I very specifically said "consumer debt" and necessary health care expenses are NOT considered to be consumer debt. I'm sorry for the loss of your husband.

we had major medical bills, lots of repairs (home and cars) plus small kids, maybe sell our house to live in a rental is another option but we wish to keep the house preferably, we already have two jobs. it is tough…

Ken doesn’t like WFH because Dave doesn’t like it, they’re robots that just repeat dave.

@@westonr4359 Yeah I saw a video the other day where Anthony said "well what I always teach..." and then said something Dave has said for 20 years. I don't understand why they call them Ramsey Personalities when they're all severely lacking in the personality department.

@@morrcomedy It's because they want to keep their paycheck.

They have to parrot Dave otherwise they get the ax..that is all.

I think it depends on the industry or the company but I don't think a blanket no on WFH is just being stubborn in your stance.

I understand the principle of what they are saying. But I agree with you as to how they portray this situation. If you have the ability to reduce interest rate and bring down monthly expense it’s makes sense to do it and stay disciplined to snowball it. I appreciate him but sometimes his advice isn’t practical.

Wow! Never thought about doing this!

Smart move 👍 💯

ya but cost of living has gone way up and ppl make the same amount. i was breaking even and then food costs 1200 more a month for my family and energy bills etc etc.. i work two jobs too btw already. no way out unless i do heloc and then pay just that off. i drive 35k a yr for my car and every car i buy is used but i lose money in cars. this is communism and it makes it extremely hard to get ahead if at all unless i get another jpb making 2x more. i have a college degree and tons of work exp. and qualifications btw

facts.

And this is a case where doing something like that makes sense. Because the credit card surely has the highest interest rate. Youre doing interest arbitrage. But some people pitch this stuff as if it was the smartest thing to do in every case and its just not.

The important thing is to take that extra money you have and use it to pay down the HELOC faster. If you start spending all that extra money, you’ve gained nothing.

@@markkauffman6184and this is what should have been said. But Dave is fixated on his way…There is no other way. Although he doesn’t like it, it can make sense, but he has to be disciplined. The method still works though, whether they are disciplined or not.

Not true.

That's where I am ..I don't borrow or sign anything ever..Never going back to that stress

I bet also when paying off higher interest debt, the reward in having fewer and fewer debt bills owed for paying stuff down feels more joyful as you knock each debt down, than getting rewarded by a lowered APR before you even take action and don’t then get to partake in removing the weight through action. Also The extreme discipline that can get someone out of debt the painful way is the same discipline when applied after you do that can get you a real savings so you can have streams of passive income.

Well You're right I also take heloc loans but I pay it out more faster There are people that clear loans .. you just have to have experience and also work for them

I tried selling my kids but no one wanted them.

Because the consequences of not paying off your consumer debt is that you wind in collections and eventually sued, or your car gets repossessed. But the consequences of not paying off the HELOC you took out to pay off your consumer debt is your house gets foreclosed on.

@@ASimoneauAmen!!

Chances are if your in that amount of debt you will not have the discipline to handle a lump sum of extra cash possibly. Only with the HELOC , when you mess up you’ll not just lower your credit and get your card repoed , you’ll also loose the house.

But if interest rates are 28% in 15k of debit and you can get a 8% loan isn’t that alooooooot of savings monthly! ?

I agree with he said about getting out of debt and true discipline is needed with a HELOC! If you have the discipline I think it’s a great idea. The interest rate is way cheaper than the credit card interest. Do not use the cards again leave alone! I repeat leave the cards alone !

Completely agree!!!

I agree 100%. It's just risky for the guy who says he now has an extra $1620 a month to go buy a boat lol

Some HELOC don’t let you put back the first 10 years only the last 20 😂

Well, read the fine print and ask the right questions. But he's correct. Going from 1800 to 600 and using the 1200 to pay it off a lot faster.

1 Corinthians 15:1-4 KJV Bible [1] Moreover, brethren, I declare unto you the gospel which I preached unto you, which also ye have received, and wherein ye stand; [2] By which also ye are saved, if ye keep in memory what I preached unto you, unless ye have believed in vain. [3] For I delivered unto you first of all that which I also received, how that Christ died for our sins according to the scriptures; [4] And that he was buried, and that he rose again the third day according to the scriptures: Ephesians 2:8-9 KJV Bible [8] For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: [9] Not of works, lest any man should boast. Romans 10:9-13 KJV Bible [9] That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. [10] For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation. [11] For the scripture saith, Whosoever believeth on him shall not be ashamed. [12] For there is no difference between the Jew and the Greek: for the same Lord over all is rich unto all that call upon him. [13] For whosoever shall call upon the name of the Lord shall be saved. John 3:16 KJV Bible For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 14:6 KJV Bible Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me.

If Peter demands an interest rate that's substantially lower it still makes sense.

@@rubenve79 It only makes sense if the debt was large and very high interest rate... he said it was small so I'm guessing $15k and under. Just knock it out and dont do it again. All that trouble to maybe save a few hundred maybe wouldnt be worth all the hassle.

@@dexterm1285 That's a fair point

@@dexterm1285 sometimes, that few hundred is what feeds the family 🤷‍♂️

No you moved it with a bunch of interest ! Some people are at a around about and can’t come out. If you make the payments (minimum payments) you will feed the creditors and as a matter of fact the creditors love u to make minimum payments, they make the money ! Nah I can agree that it takes discipline to be successful with a heloc but I do think it’s a better option.

Consume them. Rinse and repeat, ect.

You get to keep even more money over your lifetime. 😊

My thoughts exactly

Bingo!

wouldn't this be the exact same thing that Dave agrees is a good idea. take your current house and sell it, pay off debt, then get a new 15yr. mortgage at 25% of your take home. all that matters is how quickly you can clear your consumer debt. That is Dave's plan.

Yes!

Not true.

Doubt it

The day has come!! Lmao interest rates in cc’s are through the roof, HELOC is a much better option

There are many ways to accomplish the same goal. Stop being so simple minded.

@@AliciaMcIntire no it’s actually better. Look at both products. A mortgage has front loaded amortized interest. A HELOC has simple interest. That by itself makes it better. Also if you use the HELOC like a checking account you can deposit your income into to to push down the principal to pay even less daily interest. You didn’t just switch from one form of debt to another. You gain traction and changed the table of interest owed by switching products.

My mom who was single worked three jobs with four kids. It's 100% possible and all of my siblings learned a lot. It changed our family tree for the better. Not seeing her was difficult, but we got to eat and she paid her debt off so we could do things as a family. Everybody needs to stop complaining about you easy life.

@@zacharygillam5456 I am obviously clueless about this. Thank u for your comments.

Almost a year later ,How’d it go ?

Absolutely 💯🙏

Tell us when?

Dave did not say it is bad. He said... 70% behavior. Change your habits PERIOD

@@BILLIONAIREGHby that point it’s too late ! This is not a bad option for everybody !

Dave bringing that outdated boomer stock crash mentality. Dave's way isn't how rich people do it, I'll listen to the rich instead of a broke mindset boomer.

His opinion, in general he speaks truth but some answers are very arguable

Dave would probably say, “Build it at the speed of cash!”

I guess according to this video; it would be get a 5th job!

At least he didn't yell 🤣😂

How does that work when you have to make income to pay back the borrowed money, which would be subject to income tax?

@@HenryPaulThe3rd margin loans

Ditto gettingout of debt 100% agree Investment strategy 60% agree. Lol

yea because his method will take you decades to scale a portfolio lol

@@bangladeshirealtor exactly! Lol. I’m in the process of getting a heloc but I’m using it to buy another house and not on consumer debt lol.

@@bangladeshirealtor facts

Same

And Anthony O’Neill is the dumbest man in all of Tennessee

Yeah but that’s too much work for most people.

Broke caller.

And he is awesome, sonny