financial advice?
 

a call-in program on cnbc just told a 36? year old single lady to dump her home, even if she had to cut the price 10% more.

in return she could save a whopping $200 mo. while renting a smaller apt.

the goal? pay off her $40k in credit card bills with the monthly savings , since she's not going to realize any equity in this market.

this is financial advice?

I'm all for paying your bills but when do you sacrifice a home before defaulting on credit cards? which you could settle later?

she had $650 car expenses they didn't mention -- I thought she should get a $650 car! period.

mom's renting a room for $300 mo., is there room for another older lady? what about storing a car or belongings for $60-90 mo.

I'll bet this forum could come up with at least couple dozen ways to beat $200 savings from dumping a home.

Lesson to be learned... don't take advice from That guy...
 

C.T.C

Thanks for asking.

I think this advice is about as insane as it gets.

The standard credit card interest rate rule in Aust is 3% of the balance is the Minimal payment each month. Thus, with a debt of $40k, her min monthly payment Should be $1,200 a month. Which is a heck of a lot more than the $200 a month the Advice mentioned.

Also, at $200 a month, her $40k debt will take 200 months (16.6 years) to pay off.

And there's a pretty good bet that within the next 16 years, her Equity will go up, right?

Michael Ross

Re: financial advice?
 

Get a so called internet marketing Guru to donate one of the 100 or so Top Blogging courses/ebooks out there...

Have her startup a Controversial real estate Blog... Or maybe just start one yourself... :)

Done right... She'll... You'll have all the Money you need and then some...

Casey Serin has kinda moved on...

But some Good reading and Lots more ways out there to startup a Controversial business idea of some sort or another... ;)

http://iamfacingforeclosure.com/history.html
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Phil