Do you ever have someone say something that just makes you feel sick in the pit of your stomach.

I have a friend who is $50,000 in debt (credit line) who told me today she met with a financial councilor about it and he signed her up for a $60,000 leverage loan. She is now paying $300 a month interest on an investment loan and now doesn't have enough left to pay off her debts?

Are these ever a good idea? (Today was my first time hearing about one.)

It just seems wrong but she thought it was a great idea and was so excited to tell me about it I hardly knew what to say.

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I have never heard of these, any one care to explain.

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~Happiness is a large family~

I have no idea what this is. Hmmm...it sort of sounds like some kind of debt consolidation or something. I hope it's not at a terrible interest rate.

I googled it and got this:
Leveraged Loan

Boy, I'd RUN the other way! Short term breathing room, long term capsizing of the ship. Very bad solution.

I also know, that in the business world, when we are looking to buy companies, the term "heavily leveraged" means that the company carries a lot of debt. Not usually a good buy, and LOTS of due diligence (research) is needed. If I were you, I'd get your friend some info like the above and encourage her to cancel within her cancellation period.

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Happy Thanksgiving!

Make someone's heart smile today.

Doesn't sound very good.