Should you use a Home Equity Line of Credit to consolidate credit card debit? How does it affect the home?
March 19, 2010 by
Filed under home equity line of credit rates
Over 10K of credit Card debt, all with high interest rates, think it would be better to use Home Equity to consolidate or “payoff” cards to have one low rate and payment.
Yes !! Than figure the interest you paid on the credit cards and pay that amount back to your line of credit.Good Luck
Never. You put your house on the line. If something happens and you can not make the payments. They can take your house.
Knuckle down with a written budget and maybe a second job and pile cash on the credit cards until they are gone. Then cancel the cards and live debt free.
Credit has caused all this economic mess.
it’s a great idea ONLY if you’re positive you’ll be able to meet the financial agreement. if you default, the bank has the right to come take your home!
Not the best idea. Home equity lines are secured by your home. If you can’t pay your line back for any reason, they take your home
Only if you know you can make your payments. But come on people a home equity line is a second mortgage as long as he is paying his 1st mortgage that bank cant take his home away so chill out. Thats the risk they take being in second position and why it is almost impossible to get HELOCS anymore. Paying high interest credit cards off with the HELOC is a good idea, it will save you so much in interest. Thats what they were used best for, plus the interest you pay on a mortgage is tax deductable, not the interest you pay on credit cards.