"Lien"? Do you mean a mortgage? If you are unemployed, you'll find it pretty well impossible to get a loan.

And if you want to express your political frustrations, may I suggest that you check out the Hot Topics Forum, where you can vent all you want.

Here is a link that might be useful: Hot Topics

No, not a loan. I don't want that. I was just wondering about an lien as an IOU so to speak. And if that's possible? Since I'm not into my home for more than it's worth.

Am I understanding you correctly, you want to avoid paying your debt so you can invest in gold and silver??

So you would offer a lien against your home to whom? The credit card companies? No, I doubt they would care at all for that deal. They might offer an interest rate reduction or a payment plan, you would have to ask.

But they have no interest in your home. Not sure what your accountant suggested, but it doesn't seem like a do-able plan at all.

To clarify more. A lien is associated with a mortgage, or debts related to the property, such as property taxes or implied HOA dues or services, or a debt related to a contractor for work on the property (mechanic's lien). Someone who gets a court judgment against you may put a lien on your property for eventual satisfaction of the judgment when the property is sold.

No one will loan money to you against your home, for purchase of silver or gold or just cash, without a plan for you to pay the money back, which is what a mortgage is.

So I guess I'm confused as to your use of the word "lien".

Lien is what happens when you don't pay a debt like you build a new deck and won't pay the lumber company. They can put a lien on your home for the amount you owe them that will be paid when you sell it. It's not something you can do. You are in a difficult spot and you acknowledge the reason for it. Don't make another mistake by investing gold and silver. Just pay your bills with your savings and get on with your life.

Hmm...you ran up credit card debts and now you're p****d because the government doesn't want to bail you out so you can go speculate in risky commodities? And you wanted sympathy?!?

I'll offer you one good piece of advice nonetheless. Do NOT use your retirement money for paying off debt or living expenses. A 401k of any amount, or an IRA of less than $1M, is protected from any creditors during a bankruptcy.

Sell your house instead. Start over. You said you now understand what you need to do to avoid debt. Investing in gold and silver is NOT the way to do it.
Sell the house, move to an apartment until the debts are paid and you have built up "stuff happens" savings . Get another job and pay the debt. You said you can't find something that is "lucrative." In times like these, people can't afford to be fussy. A job is a job. Consider your family.
This isn't about politics, it is about poor money management during the past ten+ years. I can understand that you are upset, but ranting isn't going to solve your problems, sorry!

You simply have no conception about how loans and liens work, do you?

You spent yourself into major debt, buying things you couldn't afford. Now you want the government to bail you out.

It wasn't all banks and brokerages that got us into this fricking mess. It was also people like you, thinking you can have everything you want as long as you have a credit card.

Pay your debts, and quit buying stuff.

Methinks someone is getting all their info from talk radio....

You ran up credit card debt. You spent money you didn't have. You want to "settle" with your creditors but not pay the penalties. Whose fault is it? Obama!!!

If you want to get yourself out of this mess, it is time to take responsibility for your own actions. You need a job - even if it isn't lucrative. Take what you can find to get some money coming in and keep looking for something better. You need to stop listening to the commercials about buying metal and getting rich quick. You are in debt over your head and your plan seems to be to borrow more money??

By the way, any settlement reached between the banks, credit agency and consumer will be reported to the IRS as income to the debtor! Such crock!

I would gladly pay income tax on any debt that was forgiven. You can't beat that deal, settle debt for pennies on the dollar.

I'll agree with the others and say quit living beyond your means. Then you won't be at the mercy of banks and credit card companies.

Okay, so you owe somebody money and they forgive the loan. Of course that becomes income. It is money added to your household.

If you earn it by working, you pay taxes.

If you earn it by getting interest or income from an investment, you pay taxes.

It only makes sense that if you "earn" money by taking it from a bank in a loan, and part of that loan is forgiven so that you do not have to pay it back, it becomes income, too. Then you pay taxes on it.

I doubt you or I will ever be rich enough to make money in a way where you do not owe taxes on it.

When you receive money in return for an IOU on your house, that kind of loan is called a mortgage. It is the definition of a mortgage. Dress it up in different clothes and it is still a mortgage.

So you want to mortgage your house to get some money to buy some gold (at historically high prices) and silver, because you are in debt and want to get ahead. You don't want to pay off the debt, though. You want it to just go away.

If you are unemployed, have you looked into whether you qualify for a program like we have in Michigan for those whose jobs went overseas? Here it is called the "no worker left behind" funding, and it will pay for your schooling so you can learn a new trade and get back into employment. (PS - programs like these are provided by your fellow taxpayers. Taxes do that, they provide programs for when things get tough.)

This is not the time to buy gold or silver. It's too late. The time to buy was a few years ago when gold was a lot cheaper. As the saying goes, "Buy low, sell high."

Hi mangotoo,

What you're referring to may actually be a Home Equity Line Of Credit (HELOC), which is somewhat similar to a mortgage, as it gives you a loan, using your equity in your home as collateral.

If you are not employed and have little prospect of becoming so within the near future, you may have little possibility of having a financial institution being willing to make such an offer to you.

If you have a connection with a credit union and have built up a good reputation with them, they may be willing to make you a loan based on your integrity.

It might be useful to make such a loan, if you can, as the rate may be about 5% or so, using it to pay off the credit card debt, for the rates that standard credit cards charge is usually 15 - 18% annual rate ... and store-issued cards usually charge 25 - 28% or so annual rate.

As much of the things that we purchased using the cards is not deductible, we need to earn 25 - 35% before taxes in order to have after-tax money to pay the 18% or 28% interest rates.

Even if you could borrow enough to pay off your credit card debt in full ...

... where are you to find money to live on, month to month?

It seems to me that it would be wise for you to take a lower-level job if you can find one, as earning something from such employment is preferable to earning $000.00, that you are earning now.

I strongly suggest that you avoid digging into your retirement funds, for every dollar that you eat now won't be there to help grow another dollar prior to your retirement, or to feed you then. How do you like the idea of being forced to work until near the date of your death? And leaving next to nothing for your wife to live on, after your death?

And your possibiluity of finding a new position with a retirement provision is getting more remote, year by year.

As for investing in gold or silver ...

... there may be pie in the sky ... but I ain't seen any, lately.

If you had a bucket of money on hand, maybe you could consider such ..

... but you ain't got such ...

... so you can't consider it.

Unless you don't mind sticking your foot into a beartrap.

I hope that you can find some appropriate work, or any work available, soon.

And good wishes for havng a better New Year than this has been.

But, don't forget - no one is going to pull the chestnuts out of the fire to feed you: you need to work towrd building your own future.

ole joyful

Well, here is what I would do if I were you,
1. DO NOT borrow any more money. Period.
2. Get a job doing anything, deliver pizza if you have to.
Get 2 jobs if you have to.
3. Forget about your credit card debt for now. They aren't going to do anything to you. Get your phone number changed and PAY YOUR MORTGAGE so you have a roof over your head.
4. For God's sake, DO NOT touch your retirement account.
No touch any retirement account money.
Ride this out and keep your roof over your head.
If you don't pay your mortgage, they will take your home.
Sell some stuff to make the mortgage payments if you have to.
DOn't worry just concentrate on holding on to what you live in and drive to work.
Things will get better. You will get a better job when things turn around, and they will.
Have a Good NEw YEar!!!!