"The best things in life are free, but you can give them to the birds and bees, I want money....thats what I want.."

Yesterday, while she was doing our Taxes (this is the first year we have opted to do them ourselves, and not pay a tax person) Ali found out that one of the most highly suggested financial plans is to take out a home equity loan, and use it to pay off high interest credit cards, car notes and things like that. A brilliant idea.

So I contact our mortgage company, and find out what we can do. I am transferred to a "high risk" group, because apparently they only want to talk to people with stellar credit, and high incomes. (Why would those people need a loan? They have the credit to get low rates, and the money to not worry!) I am told that while my credit is not bad, (middle of the road)we have not paid enough on our house, even though in 2 years we have paid off 15 percent of the balance. (hmmm 15% of a 30 year mortgage sure does not seem like much)

So what I have learned is simple, you can pay your bills on time, and have little money for anything else, or you can pay all towards your house, then get a loan to cover the bills you have neglected, however, your credit will be bad at that point, and you will not qualify for the loan in the first place.

Which brings me to another mini rant. Credit is how everyone lives. Jobs, Loans, Apartments, Insurance and other things rely on your credit score. To improve your credit score, you can get a credit card, and generate positive credit. But if you have no credit, you cannot get a card. SO how do you get credit to get a card to generate credit? It's a very messed up system.