“You are actually borrowing money for more than the return you are getting on it just to have it in the bank and that is asinine IMHO.”
You’d think a pig would be smarter, no?
I remember ridiculing someone I read about who did this very same thing. This type of behavior is the very essence of the people in the move Maxed Out. People are so addicted to credit that they freak out when that potential money (in reality, debt) is taken away.
So, you pull out $100k in HELOC and pay $3k per year for the privilege of having it sit there (actually you pay more because of inflation eating away at the value of the $100k).
Maybe if you put that $3k into the bank and earned interest on it? At least then you’d only be losing the difference between the inflation and your deposit interest rate rather than 3% PLUS inflation.
