Dennis Moran
This has nothing to do with Politics. Lets see it came to me in a flash. Who do I blame? nobody its just the way things are.
Welcome to the 28/36 RULE. For some of you you already knew about it but for others here it goes. And no your not in a classroom. You won't be graded on it. You know its hard doing this because snarky remarks keep coming into my mind....go away also personal attacks....go away. Ok now thats off my chest.
We have been at defcon 1 for several months and at defcon we have been trying to do things right. Credit card interest is eating us alive.....Im sure many have tried to pay off these 28 % interest which we inherited from purchases at 7 %. The banks and finacial institutions are saying take my card and you have 18 months to pay these down. Well good luck.
The 28/36 RULE, provides these institutions wth a way to say damm, he sue is a good risk and she can pound sand.
take your gross income for a month or your annual and divide by 12 to get a monthly figure.
Take .28 times the monthly figure as in $ 5000 x .28 = $ 1,400
this is the lower limit of how much you should pay on you home per month.
Take .36 times the monthly figure as in $ 5000 x .36 = $ 1,800
This is the upper limit of how much your house payment plus debts would be allowed
some institutions also count power and water phone within this but most may or may not.
Now when you call asking for that credit card or for that matter a home loan the institution usually asks for the income and your house payment and this is probably how they say yay or nay.
They also look at your credit score (remember every hard inquiry into you fico score dings you credit) your dammed if you do and dammed if you don't. they say 580 but that appears to be a joke 580 will be like yesterdays used diapers they prefer in the high 600 or 700's.
After this it comes back with a NO WAY IN HELL remark and we will send you a letter just to remind you you fucked up.
My advise check into a Bankruptcy, and don't feel ashamed even millionares do it all the time. find a lawyer who speciallizes in Bankruptcy....its cleaner and will sure help to clean up your credit.
28 percent interest sucks and borrowing from your home morgage because of all that lovely value you have in your home.... well that will be a 8%, not 2, 4 or even 5%.
You may also, consider a home improvement loan...that way you keep the low rate on your present morgage and get a 2nd mortgage at a higher.
I hope this is clear and helps someone.
Dennis.
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