The Pre-Recession Housing Problem That’s About to Slam Homeowners

The home equity line of credit (HELOC) had been around for many years before it became a hugely popular financial product in the early 2000s. When the financial crisis happened in 2008, drastically lower home valuations put a stop to the HELOC boom, and today we see far fewer being issued by lending institutions. However, … Read more

Should I Take Out a Home Equity Credit Line to Pay Off My Credit Card Debt? – Joni

“Dear Steve, Credit card debt about 30,000. I contacted you before but my computer crashed and I can’t locate your email. Own a home, never late on mortgage, pays credit cards on time. Interest rates are so high I’ll never catch up. I’m thinking on a home equity credit line to clear up this debt … Read more

I Have Had Two Homes Foreclosed On Me. Will I Be Sued? – Ana

“Dear Steve, Had my 2 homes foreclosed. One was already foreclosed and the second will be finalized on March 26th. I have equity line of credit loan’s and cosidering filing for bankcruptcy because I’ve heard that the bank’s will probably sue me for the amount’s owed on these loans. Help!!! Ana” Dear Ana, The banks … Read more

Donna Writes and Asks “What Is The Best Way To Become Debt Free The Fastest?”

“Dear Steve, We owe about $70,000 on our mortgage (we pay $100 extra each month), we have a $110,000 equity line and about $20,000 in credit card debt. We pay extra on each but don’t seem to be getting anywhere very fast. We want to be debt free. What is the best way to become … Read more

We Were Going to File Bankruptcy But Then Stopped to Negotiate With the HELOC Lender. – Dorn

Dorn “Dear Steve, We are filing for chapter 7 bankruptcy protection for our 50,000 in credit card debt. when we went to see a bankruptcy lawyer, he recommended that we also walk away from our home b/c we are upside down on the mortgage and heloc. At first it sounded great to do this and … Read more

I Used an IPO to Pay Off My Mortgage. Now I’m $450K in Debt. – Lynn

“Dear Steve, 6 years ago, with money from a high tech IPO, I paid off my house. Shortly thereafter, my husband and I started a business (with a HELOC). 4 years into the business, we had accumulated a $390K balance (maxed out) on our HELOC since the business was not profitable and neither one of … Read more

I Owe $22,000 On One Credit Card and Now Want to Get Rid of It. – George

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question.

I Have a HELOC Loan Against My Brothers House. I Can’t Make Payments. – Junior

“Hi Steve, Last year I started the process to buy a house with my domestic partner but 4 days before the closing in nov. 2008 I lost my second job since then I been trying to find a second job (part-time/full time) without look, since then I have add about $20,000 in debt. but I … Read more

I Am Currently 4 Months Behind on My Mortgage and HELOC. What Do You Suggest? – Debbie

“Dear Steve, I am currently 4 months behind on my mortgage and my heloc. I have worked out a modification with my primary lender that I can live with, and I continue to work out a settlement offer with my heloc throuogh chase bank. what would happen if I just paid my first mortgage ? … Read more

How Can I Get My Discover Home Loan Rate Lowered? – Glen

Glen “Dear Steve, Work in Construction and only working 25-35 hours a week, girlfriend left me who payed half of home loan, first mortgage is $1035 a month includes taxes and pmi, 30 year fixed at 5.9%. I am fine with that. Home equity loan by Discover Home Loans remains $23,600 and 13 1/2 years … Read more

I Had to Use My Credit Cards to Live and Pay Bills After My Divorce. – Christine

“Dear Steve, After getting divorced, I had to use my credit card to live and pay bills, taxes,etc. Then I got remarried and we remodeled our home and bought some new things to go into the home. We both have good jobs and great credit, but we have no savings at all. We are living … Read more

I’m Considering a Sweep Loan to Pay All the Credit Cards Off. – Jonathan

“Dear Steve, I have 13K of credit card debt with high interest rates on top of a very large student loan bill. I make 6 figures, but find it very difficult to pay these debts down. I’m considering a sweep loan to pay all the credit cards off and lower the interest rate. What recommendations … Read more