On the other hand, you could just go to Vegas, put it all on black, and if you hit, pay off your debts and have a nice tidy sum left over. If you don’t hit, well you’ve only lost the bank’s money and you can declare bankruptcy.
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True story, last year a buddy of mine took out a $350K HELOC on his nice newport beach home which had about $500K in equity. He put it ALL into one stock, on tips from “friends” that it was about to explode. Unfortunately, they “meant to say” implode, the stock is now about 15% of his buy in price (he did manage to cost basis adjust on his way down the toilet). He finally dumped it after losing most of the 350.
So now he owes roughly $300K at 8 or 9% for a big huge steaming pile of nothing.
He’d have been infintiely better off putting it all on black. Less stress, less time wasted.
Oh, and now that $500K in equity, is down to zero (or negative) because the house has decpreciated a ton since this happened. He even tried to sell and couldn’t get close to his price.
