What would happen with personal debt? I have a small line of credit at the bank that has my house as collateral. Should I pay that off?
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What would happen with personal debt? I have a small line of credit at the bank that has my house as collateral. Should I pay that off?
There are so many factors involved in that decision and so many "ifs" about which event happened first, that has to be your decision. If the loan has an adjustable interest rate and the bank can increase it, I absolutely would close it.
I paid off my equity line and closed it when I began my exit from the system. IMHO, everyone would be better off if they lived without credit, period. Keeping the minimum in a bank to cover the monthly bills is enough exposure for anyone.
It takes a change in mind set to see the difference, but credit is the major drag on a person or family's well being. Remember that, if a bank goes under, it still owns part of your house if you have a mortgage. If it somehow reconstituted itself in twenty years, it is still part owner of your home. Not good!
So many things to think about!🙂Thanks so much for taking time to answer my questions.
Be careful with free opinions, however well intentioned they are.
There is indeed much to think about and these are perilous times we are entering. I am a great believer in "stacking and holding". Credit and inflation are going to kill the banking system. Write it down.
It all makes me glad that I am old! 👵😃
I do agree with you about that. Starting out now is a going-to-fail proposition.
Check this article showing what gold will buy in Venzuela today. It has more than held its value in purchasing power:
https://www.zerohedge.com/news/2018-08-27/10-shocking-photos-show-value-gold-currency-devaluations