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We qualified for a large loan

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    We qualified for a large loan

    We are about 2 1/2 to 3 yrs post BK 13 discharge

    I never got around to checking our latest credit scores. My husband never got a credit card, yet. I have 3 credit cards and only one has a small balance. We have two car loans and the HELOC which is just under $4,000.]

    Well, we have plumbing issues in this old house. We have to have about $19,000 of repair work done. We qualified for a $24,000 loan at 13% interest over 10 yrs. There were two other loans for shorter time period/lower interest, but we decided to go with the lower payment and add to the principal instead of a large payment.

    I am so bummed to have to have so much debt now between the cars and now the plumbing issue, but the pipes are quite old, tree roots and other damage. It sounds like they can fix it pretty much from inside the house with a 2x3 foot hole in the basement floor. Unless there is some unforeseen problem then they have to dig in the yard and both of these options are generally the same price (about $500 difference).

    One of the first things my husband said was at least we didn't run into this problem 5 yrs ago. That's a good way to look at it.

    I am glad we were able to get the loan and after living through BK 13 I know we can tighten our belts and be able to pay the loan down quicker.

    We need other home repairs, but they will have to wait which is ok because I can't think of having this debt for many years.
    I am not an expert. I share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

    #2
    Ouch, yeah, unexpected expenses hurt. Too bad you couldn't extend your HELOC high enough to cover the work because you can deduct the interest you pay on your taxes.
    Chapter 13 (not 100%):
    • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank cum Bank of Southern California
    • Filed: 26-Feb-2015
    • MoC: 01-Mar-2015
    • 1st Payment (posted): 23-Mar-2015
    • 60th Payment (posted): 07-Feb-2020
    • Discharged: 04-Mar-2020
    • Closed: 23-Jun-2020

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      #3
      Our HELOC was shut down during the BK13 so there's no credit line available. We probably would have had to reapply with the bank and the local bank we go to is ultra conservative. They are a good bank for a mortgage and don't sell off the mortgage, etc which is why we went with them in 1997!

      It took almost 3 weeks to solve this problem, find out what was wrong. Partly because we didn't have time to sit and wait literally all day for the plumbing service to come and once we started with this company we wanted to stick with it. They are very busy. We have used them twice before and know they are a good company. Although, now I KNOW that if you spend big bucks like we are become some sort of elite member and have priority on ANY further calls for the next year and thereafter for a nominal cost.

      I've been second guessing our decision thinking maybe we should have taken the "quick fix." The selling point was to do it right if at all possible to avoid any issues in the future since it's likely we would have issues due to the age and condition of the clay tile/pipes.

      We can afford the monthly payment, but 10 yrs is a long time when retirement is nearing and you had other things in mind to spend money or building a car down payment.

      Right now other expenses will be on hold. I think we will save up money instead of dumping it into larger payments right now since we do have property taxes and income taxes to pay. In about 6 months we can see what we have saved and then maybe put extra on the loan. I know we will build interest, but I don't want to go back into the debt cycle.

      I might feel extra stressed since this is HOW our debt that ultimately lead to BK started with home repairs on interest free loan that we couldn't pay off in time and then had no savings when other stuff happened and then had to borrow more and more. We took one step forward and one or two and ultimately miles back. If we move, sell the house, in a few years it would be easy enough to pay off this 10 yr loan.

      We should find a way to pay the loan off in less than 10 yrs. I want a new or newer car when I retire in about 8 yrs. My husband and I both plan to keep working part time after retirement. In my case it would be prn (as needed) after retirement since I have that opportunity I could take off any amount of time I want with that sort of job. My field has gotten so toxic I don't want to work full time longer than necessity. It's very sad because the field use to be so wonderful and if it was still that way I wouldn't be counting down the years.
      I am not an expert. I share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

      Comment

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