Not wise at all.
No wonder this is Generation Debt. What ever happened to living within your means and having 6 months of living expenses in the bank?

 

Unfortunately $35,000 is optimistic. At my airline, where new hire pay is $50 an hour, I made an annualized equivalent of $30,117, based on the W2 laying beside the keyboard.

 

Not sure how that is possible..When I make $24 hr and made $32k last year.

Whats your guarantee?

 

He is probably factoring in the training pay which is not at $50. I am just guessing though.

 

Depends on how you look at it. Don't know the guys specific situation, but MAYBE he already has six months of living expenses. He would STILL need SIX more months of money.

Besides, a HELOC is usually very low interest The finance charges you will pay on the debt are very low. I'm not sure about all of them, but mine was interest only, and the it's tax deductible. Not saying it's a good idea to ONLY pay your interest and no principle. But, if you have a lean month and can't afford to knock down the balance, you can still make the payment and not take a credit score hit. Way better than high interest revolving credit card debt.

From personal experience, if you are going to go with the HELOC route. Start applying BEFORE you take the pay hit and your income to debt ratio is better. It can be difficult to qualify AFTER you have taken the cut if they are requesting you most recent pay stub.

 

I like that idea! I am also considering selling the house, and moving to my domicile, and maybe using the money I make on the house for some living expenses.
To answer some questions, I dont have 6 months living expenses in the bank UNFORTUNATELY, I wish I did....another reason I am changing jobs, so I can have that option. 9-11 really screwed me, like it did a lot of others in the upgrade. 8 years later, I am in the same position, and if I dont do something now, I will probably be here 8 years from now. (by the way, I am going from 135 to 121)

 

if you work where i think you do...assume 10 months on the line on a reserve line w/o breaking guarantee would give you 35000. that's without per diem and training pay. your w2 on a full year? or are you quotin' your AGI?

 

This is a really really DUMB question I'm about to ask, but here goes: hourly pay is based on flight hours, not hours on the clock, right? (IE, not making any money when delaying for weather, etc?)

I'm bracing for the sarcastic replies...

 

HELOC or sell sounds like the most logical to me too. If you go your HELOC route just don't change any spending habits and you should be able to pay it off as your pay increases. I agree keep your kids at home if you can no one is a substitute for a parent. You will never regret that your kids were able to stay home. You can make more money but you can't make more time! (time to spend with your kids)

 

(Brace) There are no dumb questions...only dumb people.
Just kidding, Couldn't resist. I would like to know the answer to that also.