Couple struggling to pay off $105K HELOC wants to turn it into a mortgage. Why The Ramsey Show doesn't support this idea

Core Insights - The article discusses the financial struggles of a couple, Josh and his wife, who took out a $105,000 home equity line of credit (HELOC) for home renovations but are now only making interest payments, leading to frustration and stagnation in debt repayment [4][3][11] Financial Situation - Josh and his wife have a dual income of approximately $11,500 per month, no mortgage payments, and four children in private school costing around $3,700 monthly [4] - They currently owe just over $65,000 on the HELOC and are paying $450 monthly in interest on a variable rate [3][4] - The couple's financial comfort led them to take on a large loan without fully considering the long-term implications [8][9] Spending and Debt Management - The hosts, Warshaw and Cruze, highlighted that Josh could afford to pay more towards the HELOC, suggesting he could pay $1,000 a month [2][3] - They emphasized the importance of cutting discretionary spending, such as dining out and vacations, to prioritize debt repayment [5][11] - Josh expressed reluctance to pause retirement contributions to focus on paying off the HELOC, indicating a lack of urgency in addressing the debt [11][12] Lifestyle Factors - The couple's situation exemplifies "lifestyle creep," where increased financial comfort leads to higher spending without adequate planning for debt repayment [8][9] - The hosts advised against converting the HELOC into a mortgage, as it would extend the debt duration and potentially increase financial risk [10][11] Recommendations for Borrowers - The article provides several recommendations for individuals considering borrowing for home renovations, including budgeting before borrowing, choosing the right financing, and matching payment schedules to financial goals [12] - It suggests avoiding the conversion of credit lines to long-term debt unless there is a clear plan for repayment [12]