Single Post Display - MarketTicker Forums


	Detailed market commentary at The Market Ticker and Ticker Classics (The Year 2011 In Review) Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here. BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda) RSS available

MarketTicker Forums Single Post Display (Show in context)

User: Not logged on

User Info	Oh Do Come On Friday; entered at 2007-12-01 16:46:27
Pika-steph Posts: 51462 Registered: 2007-09-11 Live Free Or Die; US Army Est. 1775	Downrange - I think KD has already said it - NEVER, NEVER touch your protected assets. EVER. In what is to come, whether you believe it will be inflationary or deflationary the scenario you present regarding your sister foretells a realistic possibility of looming trouble, if not disaster. Lets analyze some things here: 1. I will assume she can afford the house based on the mortgage amount you have listed. If it is a fixed loan and secure...she also has equity there. However, she cannot and will NOT be able to sell it quickly, if at all. This makes this money illiquid. 2. She's carrying an extraordinary amount of unsecured debt. There very well may be a time she cannot make the payments. There is also a very good chance interest and/or terms on these CCs go parabolic as the banks try to get as much money as they can. Some questions: If she walks away from the house, or goes into foreclosure. What money will she have to find another place to live? Where could she find another place to live at the price she has fixed right now (again, assuming a normal fixed rate loan)? She's not getting another home loan, that's for sure. She's in DEBT, she doesn't have money for security deposits, etc. on a rental. Nor would she pass a credit check, I would assume....once she has begun to struggle with payments. Exactly what could she possibly gain by paying off those ccs with her retirement funds and then ends up working at a reduced salary job? What SHOULD she walk away from that would garner her the MOST security? Retirement accounts - all protected in BK. House - CAN be protected in BK up to a certain amount of equity. CCs - CAN be jettisoned through BK IF one qualifies for Chapter 7. One will qualify for Chapter 7 if one is working a job for $35k. 2007-12-01 16:46:27