I didn't go through with it

[guyer6719]

I should post this here as well:

but I quickly jumped out of the pool.

My credit report is definitely not a thing of beauty. It's on the upswing, but still has some blemishes. I tried to get some cash to fix the house. The cash was so tempting, but I would rather wait a year until some of the other blemishes are gone and I have better credit. Here goes my current situation versus my would be situation had I taken the loan:

Current interest rate: 8.25%
Proposed: 12.5%

Current morgage payment: $530/month including taxes and insurance
Proposed: $700/month not including taxes and insurance

The loan would have paid off a few small accounts, but nothing I can't handle myself.

So then I googled the company's name and found out that they are famous for their predatory lending practices. I just paid off my car and I am looking forward to having the extra cash. I think this is where some people go wrong...they are so used to being in debt...paying and paying...that when they are not in debt they have to jump back in.

12.5% ???

Heyall to the naw!

[DEANNATX]

I'm glad you didn't!

that when they are not in debt they have to jump back in.

Very true. It's about our "earn to spend" mentality. Like if we get a raise, instead of saving it each month or using that extra money to pay off an exisiting debt, we think that now we can afford a more extravagant lifestyle so we go out and accumulate more debt.

[DEANNATX]

And if you don't mind, I'm curious, who was this lender?

[guyer6719]

your avatar is hilarious! lol!

The lender is Wells Fargo.

[DEANNATX]

Thanks! It used to have a slower grind to it, but Scorch edited it for me so it would be smaller and fit. :)

Wells Fargo huh? I was thinking it might be Citi-Financial. They did the same thing for me but with my car. I only owed like 3,500k on my car and they paid off the note plus quote a bit of other debts I had accumulated and I got some cash out of the deal to help out a family member in some legal trouble. But they also raised my interest rate from Ford's 10% to their 24.99%. My car payment went from $99/month to almost $300. :( I have since refinanced a few times and gotten my rate back down, (thank God), but I still look at that as the turning point in my "financial life". Now it is at $215, but I'm still paying for the mess I created with that loan. :( Worst financial decision ever that will NOT be repeated.

So I was very happy to hear that you did not go through with this! :)