juniper asked in Business & FinanceCredit · 1 decade ago

Is it a good idea to get a home equity line of credit to pay off credit cards?

5 Answers

Relevance
  • Laura
    Lv 6
    1 decade ago
    Favorite Answer

    A line of credit is just another credit card. If the interest rate with the line of credit is less than the interest rate on the credit card then it would be a good idea. Of course, you want to try very hard not to run up your debt again.

  • 1 decade ago

    It's not. First, you probably can't get one any more. But, more importantly, credit card debt is unsecured. A home equity loan is secured by your house. By taking out a home equity loan and paying off the credit cards, you are turning unsecured debt into secured debt. You are putting your house on the line for your credit card debt. It's really a bad idea.

  • 1 decade ago

    My Wife and I did this very thing almost 3 years ago and it saved us over $600.00 a month.

    The thing you have to get used to is using your credit cards and paying them off in full every month.

    We have not paid a dime in interest on credit cards since we did this but have writen off the interest on our taxs we paid on the loan.

    Source(s): Finance Manager for voer 8-years / 2008 edition Consumer Action Handbook.
  • 1 decade ago

    Not usually since most people who get into credit card debt will do it again and now risk their house.

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    You need a written plan for your money, not voodoo methods of surfing debt around.

    Source(s): Hint: It's a budget
Still have questions? Get your answers by asking now.