Want to consolidate my debt to make one payment .Should I get a Home Equity Line or Loan of credit?
I own ,000.00 in credit card debts.
I’m worried to get the Equity with less rate because ones they start to go up I can end up paying a lot; at the same time I don’t want to get the Equity with higher rate because even though it’s a fix rate I will still pay more than I can bargain.
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Often it can make sense to pay off credit card debt with a home equity loan. You usually pay a lower interest rate on a home equity loan than on a credit card, and your interest payments on a home equity loan are tax-deductible up to a loan of $100,000. However, if you cannot afford the payments on a home equity loan, it may be better that you talk to the credit card company and try to work with them. For all you know, the credit card company may give you a lower rate or adjust your balance. (You may want to work with a debt counselor. For a list of debt counselors maintained by various state governments go to http://www.vilkri.com/pubreader.php?page=debt_counselor .) The problem with a home equity loan is that you can put owning your home into jeopardy if you do not make the required payments.