Quote:
|
After the refi. they would still have over $45,000 in equity. If a really hard core emergency came up a HELOC could make their mortgage payments for many months. (I think given their credit history they'd rather take a HELOC then default on unsecured debt anyway.)
|
That's totally true. I guess I'm just extremely risk-averse. Just sacrifice the nice car for a few years while you recover though - the cash flow problem is solved and you are getting
out of debt instead of shifting it around. I'm going to choose to walk
away from debt 99% of the time.
I'm not saying they should never have a nice car. I'm saying they're in a bind where they're only seeing a refi as their way out - when in reality there is a much safer (even easier) way out that would get them out of debt
faster and not risk their house.