Quote:
Originally Posted by doodah
Yes, please, Baggywrinke. I am not aware of this thing you speak of. My debt is not nearly so burdensome as yours, but there is some that I'm whittling away at. Would this help me whittle faster? Thanks!
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In the current economic climate the HELOC shuffle as it
was taught to me is not safe. You must trust that your
bank will not freeze your HELOC leaving you high and dry.
View these videos by Harj Gill to see how the shuffle
worked.
http://www.youtube.com/watch?v=PRDWnKHZOM8
http://www.youtube.com/watch?v=NUWvQD9zbQ8
http://www.youtube.com/user/speedequity
btw; you don't need anyone's software to make this work...
We were taught to use two and one half times our
monthly take home pay as a cap on the HELOC.
Our modified version will entail one month's take
home as a heloc cap with one month held in savings as
emergency reserve in case the heloc is frozen on us.
We also will not be paying primary bills from the heloc.
The heloc will only be used for lump sum payments toward
the mortgage, and emergencies
It is less efficient and will take longer, but it will still work.