Comments on: Uh Oh. It Might Be Time For A Real Emergency Fund http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 11:44:22 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: No Debt Plan http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124704 No Debt Plan Sat, 09 Aug 2008 16:58:53 +0000 http://www.ncnblog.com/?p=1497#comment-124704 When you say you keep your emergency fund in cash, do you mean in actual cash (like in a coffee can in the backyard?), or do you mean in a savings account like ING? When you say you keep your emergency fund in cash, do you mean in actual cash (like in a coffee can in the backyard?), or do you mean in a savings account like ING?

]]> By: Lazy Man and Money http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124696 Lazy Man and Money Sat, 09 Aug 2008 16:35:40 +0000 http://www.ncnblog.com/?p=1497#comment-124696 I just read the article in more detail. It sounds like they told people that they couldn't access their HELOC because their home dropped in value. Perhaps these thousands of people no longer have any equity to withdraw. If that's the case, I don't blame the bank. I just read the article in more detail. It sounds like they told people that they couldn’t access their HELOC because their home dropped in value. Perhaps these thousands of people no longer have any equity to withdraw. If that’s the case, I don’t blame the bank.

]]> By: Lazy Man and Money http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124695 Lazy Man and Money Sat, 09 Aug 2008 16:32:55 +0000 http://www.ncnblog.com/?p=1497#comment-124695 Is it even legal to freeze a HELOC? I mean if you have the equity (and can prove it with an independent appraiser), shouldn't you have access to it? This must be reason #572 on the list of why one should not pay off their mortgage before investing. At least if you invest your money (with a conservative asset allocation), you'll be able to get it if you need it. Is it even legal to freeze a HELOC? I mean if you have the equity (and can prove it with an independent appraiser), shouldn’t you have access to it?

This must be reason #572 on the list of why one should not pay off their mortgage before investing. At least if you invest your money (with a conservative asset allocation), you’ll be able to get it if you need it.

]]> By: Budgets are Sexy. http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124638 Budgets are Sexy. Fri, 08 Aug 2008 19:53:46 +0000 http://www.ncnblog.com/?p=1497#comment-124638 I've been there alright, and it IS scaryt! Our 2nd mortgage is a maxed out HELOC for $72k, When i got into personal finance last year, I started researching ways to save more money, in particularly w/ our Heloc at 9%. We re-fi'd for only $50, and since it's variable, we've gotten it down to about 5%! BUT, because i wanted to save even more, we started applying ALL our money towards it...all paychecks, savings, emergency funds, etc. We figured we'd save a good 5% on $10k each month since we were putting so much money against it. Well, it worked for a good 4 months saving us hundreds of dollars, but then we got that dreaded letter telling us they FROZE OUR HELOC! within 24 hours all $10k we had applied to it was "lost" and we couldn't get it back to pay bills, etc. I say "Lost" only because we can't touch it anymore, but it basically decreased our mortgage so we didn't really lose anything. Wow, this is a lot longer than i intended to write - sorry about that. Just beware if you're working on something wonky w/ HELOCS....every now and then something crazy can happen :( I’ve been there alright, and it IS scaryt! Our 2nd mortgage is a maxed out HELOC for $72k, When i got into personal finance last year, I started researching ways to save more money, in particularly w/ our Heloc at 9%.

We re-fi’d for only $50, and since it’s variable, we’ve gotten it down to about 5%! BUT, because i wanted to save even more, we started applying ALL our money towards it…all paychecks, savings, emergency funds, etc. We figured we’d save a good 5% on $10k each month since we were putting so much money against it.

Well, it worked for a good 4 months saving us hundreds of dollars, but then we got that dreaded letter telling us they FROZE OUR HELOC! within 24 hours all $10k we had applied to it was “lost” and we couldn’t get it back to pay bills, etc. I say “Lost” only because we can’t touch it anymore, but it basically decreased our mortgage so we didn’t really lose anything.

Wow, this is a lot longer than i intended to write – sorry about that. Just beware if you’re working on something wonky w/ HELOCS….every now and then something crazy can happen :(

]]> By: Colorado Mortgage Company http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124621 Colorado Mortgage Company Fri, 08 Aug 2008 15:23:48 +0000 http://www.ncnblog.com/?p=1497#comment-124621 That's really scary. Our economy is in real trouble, it seems. Home equity isn't real wealth, so it shouldn't be depended upon. Cash isn't real wealth either as it does not contain any intrinsic value and cannot be swapped for anything except another dollar bill. If we ever had a real emergency, cash probably wouldn't be as much value as it is today. I think people need to start thinking about making more serious preparations for emergency. That’s really scary. Our economy is in real trouble, it seems. Home equity isn’t real wealth, so it shouldn’t be depended upon. Cash isn’t real wealth either as it does not contain any intrinsic value and cannot be swapped for anything except another dollar bill. If we ever had a real emergency, cash probably wouldn’t be as much value as it is today. I think people need to start thinking about making more serious preparations for emergency.

]]> By: ChristianPF http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124615 ChristianPF Fri, 08 Aug 2008 13:55:15 +0000 http://www.ncnblog.com/?p=1497#comment-124615 You know I was just talking to someone about money merge accounts and I brought this up as a possibility... If you were doing a money merge type thing, you would be in a heap of trouble if your HELOC got froze... You know I was just talking to someone about money merge accounts and I brought this up as a possibility… If you were doing a money merge type thing, you would be in a heap of trouble if your HELOC got froze…

]]> By: SingleGuyMoney http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124527 SingleGuyMoney Fri, 08 Aug 2008 00:40:18 +0000 http://www.ncnblog.com/?p=1497#comment-124527 I do not have a Home Equity LOC. I thought about getting one but now I am glad I didn't. I know that whatever money I've saved for an emergency will be there when I need it. I do not have a Home Equity LOC. I thought about getting one but now I am glad I didn’t. I know that whatever money I’ve saved for an emergency will be there when I need it.

]]> By: bluntmoney http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124493 bluntmoney Thu, 07 Aug 2008 20:58:57 +0000 http://www.ncnblog.com/?p=1497#comment-124493 I agree. Plus the last thing I'd want to worry about in an emergency would be how to pay a loan. I agree. Plus the last thing I’d want to worry about in an emergency would be how to pay a loan.

]]> By: Vinny http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124452 Vinny Thu, 07 Aug 2008 15:11:56 +0000 http://www.ncnblog.com/?p=1497#comment-124452 This makes sense to me and I think it reflects good on the company not bad. I think the company would be crazy to let people borrow against their houses when the value of the house (sthe ecured asset) may be going down. Until they can feel that the money they lend out is properly secured they arwe making a good choice. OF coures this will stunt thier ability to gain interest off new HELOCs but it will save their tails is thing home prices drop further. This makes sense to me and I think it reflects good on the company not bad. I think the company would be crazy to let people borrow against their houses when the value of the house (sthe ecured asset) may be going down. Until they can feel that the money they lend out is properly secured they arwe making a good choice. OF coures this will stunt thier ability to gain interest off new HELOCs but it will save their tails is thing home prices drop further.

]]> By: James http://www.ncnblog.com/2008/08/06/uh-oh-it-might-be-time-for-a-real-emergency-fund/comment-page-1/#comment-124284 James Wed, 06 Aug 2008 20:12:35 +0000 http://www.ncnblog.com/?p=1497#comment-124284 That's exactly it...don't let ANYONE ELSE be responsible for any part of your financial success. Think about Social security. Think about defined-benefit retirement plans. Those are always subject to financial and/or political pressures. Now...think about a 401k or an IRA. It is YOURS and no-one can take them away from you (outside of raising taxes). That’s exactly it…don’t let ANYONE ELSE be responsible for any part of your financial success. Think about Social security. Think about defined-benefit retirement plans. Those are always subject to financial and/or political pressures. Now…think about a 401k or an IRA. It is YOURS and no-one can take them away from you (outside of raising taxes).

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