Home Equity Line Of Credit IS A Second Mortgage…
We’ve been talking about how I got into this financial mess I’m in. While the installment loan was certainly bad, it wasn’t the only thing hurting our finances. Nope. Long before the installment loan was the home equity line of credit. But first, we need a little back-story.
I was never much for home ownership. The beauty of rentals is that when crap breaks, you call the landlord and THEY fix it. And if you get a good realty company, they fix it fast and right. And I had one of those. So, when Jen decided we needed to buy a home, I had some preconceptions about how I’d do it.
I knew fixing stuff would cost money, so I need to watch how much we spent in monthly expenses and save some for emergency stuff. One thing I knew was that I didn’t want any extra debt like a second mortgage. But apparently, as a kid, I never understood what a second mortgage was. In my head, it was a bank giving you the value of your home…twice. (Yes, I realize this makes no sense, but teens know everything, remember?)
And apparently, I wasn’t alone because a friend recently told me they had no idea that home equity line of credit was a second mortgage when they got it. (So there… 
) So when I was offered a home equity line of credit, I thought it was the greatest thing since sliced bread. Idiot.
It’s not. It’s a really dumb idea. And I was all over it.
Let’s make something really clear here. I accept the responsibility and blame for being in this mess. Ultimately, it’s my fault. But when I was digging these holes, there were many, many companies dying to hand me shovels. And whether you accept it or not (and deep down, I don’t really care if you do), they had a part as well.
The difference is that I don’t have access to TARP funds.
