Buying things you don't need with money you don't have?
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Use equity for friend with credit-card debt? Be careful
March 13, 2007

Source: Scrippsnews
This question was presented to a debt adviser:
My friend has several credit-card accounts totaling more than $35,000 in debt. My friend has a steady, well-paying job. But the debt-to-income ratio is too high for the banks, so a personal loan could not be approved and tapping into home equity is out of the question. I have considered using my home-equity line of credit to help, but am very concerned about putting myself into that situation. It’s a close friend, but someone whom I have known only for a couple of years.

Please read Steve Bucci’s excellent advice on this situation.


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