If you were talking about $145k in debt I'd agree with a fire sale on everything that isn't bolted down. We are talking $45k however and I don't see that as a need to sell everything immediately. I'd keep at least one back up vehicle if you don't owe anything on them. The ability to get to work without hassle is important. The bikes are a different story as unless the wife rides they won't be of much use to her as a back up vehicle. I'd part with those over the cars if I had to make the choice. If you drop yourself down to two 4 wheeled transportation devices you can almost guarantee that car that reliable was yesterday will get a visit from Murphy and let you down.
$45,000 in credit card debt (if that's what the debt is for him), at 25% interest, not even considering compounding it, just simple multiplication... is $11,250 PER YEAR INTEREST . (again, not even including compounding so would be more) no way possible the cost of a home equity loan would cost remotely close to HALF of the interest for 1 single year, and it would be (estimated) 1/3 of this annual debt cost. And his interest would at least be tax deductible (minor savings but it's something). I'm no financial advisor, but unless he can sell off a LOT of stuff, i don't see why he wouldn't get a home equity loan to pay this off. Lord forbid he ends up in some problem, he can always take out a cash advance on the card again, and pay off the home equity loan he borrowed on to begin with.
It's through our credit union. There's no fees to do the HELOC. Also, unfortunately the interest on the home equity is only tax deductible if it's used for home improvements.
ok.. so who's gonna check ? Get some reciepts from a buddy that does a renovation project .. But saving more or less 66% of $12,000 in annual interest, sounds like a good idea, weather it's tax deductible or not
I've been on a major downsizing trend over the last few years. I've sold bikes, my hunting property, a bunch of guns, C6 Corvette, boat, SeaDoo's, etc. I'm searching for the thing that I'll miss when it's gone. I haven't found it yet. It's all just stuff. If you don't like it being gone, it's very easy to get more stuff.
I've got a 99 R1 I am going through before I sell it. Really clean, but high mileage, with a few scratches here and there. (30k miles). A few decent upgrades (Fox racing shock/later model triple clamps with revised offset etc). Not 100% original as the lowers/tail section were painted black by the previous owner. A very nice looking bike though. Just needs tires. I figure the new owner has their preference, so I'm not going to bother. Just for reference, here is one that sold a week or two ago on BAT. Low miles though. Went for a pretty penny. I'd be happy with half that for mine. https://bringatrailer.com/listing/2000-yamaha-r1-2/
Well a lightly used supermodel is worth much more than a rode hard and put away wet , high mileage, whore.
come on.. seriously ? but with 88,000 more irs agents, i guess it may be possible to get nabbed for the few hundred he might save.
He's ranking right up there with Cortez on solid financial advice. "Take out a HELOC and if you fail to change your spending habits pay the HELOC off with another credit card before they take your house."