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Question By
Sunny1216

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Equity line of credit maxed w
My home has no mortgage but my husband got a home equity line of credit for $150,000 3 years ago and our home is worth $550,000. The balance never goes down as he only pays the minimum. His income is much less than when he initially applied. We need to pay off $2,000 AMEX at 25 percent and Wells Fargo $8600 at 11 percent. Both cards at 80 percent utilization. Home equity line and bank account are Wells Fargo. TU 709

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I am not sure what your question is here, but I will say, if you are having financial problems and own a home worth half a million, would you consider selling the home and downsizing? Would eliminate your financial woes and give you breathing room for the future.

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Reply by
EricHanson

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That is sound advice that probably won't be followed. Assuming she does not want to move my question would be whether or not they have any equity left in the home. She does not mention what is owed on the primary mortgage but if they are not maxed with it or upside down now, they might be able to squeak out a refi and bundle the whole thing.

Assuming this is not the case, gotta tackle the issues case by case based on the interest rate. First, pay off the Amex. 25% is crazy and the balance is not very high. Secondly the WF card should be addressed. 11% is a pretty fair rate for a CC but I'm imagining and hoping that the HELOC and prinicpal are at much lower rates than that.

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