Is it a good idea to take out a home equty loan or line of credit?

Is it a good idea to take out either a home equity loan or a home equity line of credit to pay off high interrest credit cards/ and other debts?

Is it a good idea to take out a home equty loan or line of credit?

No Bad Idea. What you will do is put an unsecured debt on your house and you never want to do that. You would be better just to work up a plan and pay off the cards or if you must transfer the cards to a low rate card and pay it off as fast as possible. The reason you do not want to put it on your home is what if something happened and you lost your job or got hurt (car crash, etc) and could not work. If you do not pay your credit cards then it just messes up your credit but if you don%26#039;t pay your equity loan or mortgage they will come take your house. Or what if you don%26#039;t change your spending habit you pay off the cards with an equity line and then run the cards back up. That happens all the time.

Is it a good idea to take out a home equty loan or line of credit?

There is only one condition this is good . . .you pay off and cancel your cards. Otherwise you will be far too tempted to have the line of credit and also run up your cards again and then be in more trouble than you%26#039;re in now.

Keep your favorite card with no balance for online orders, hotel rooms etc. Unless you have the money to pay it off, don%26#039;t use it.

Is it a good idea to take out a home equty loan or line of credit?

Yes. Using the equity in your home is not a bad thing, it actually helps you save money by paying off credit cards or other debt that would have a higher interest rate. Let%26#039;s say you have $20,000 in credit card debt total %26amp; the avg. rate is 18%. The minimum you are required to pay is probably 4% monthly so that would be a total of $800. $300 would go to INT %26amp; $500 to principal, (month 1) anything you pay additionally would go to principal. Each month that will change because you are paying down the principal. Now look at a home equity line of credit: Continue to pay the $800. Prime is 6% so we will use that rate. With a line of credit you can select to pay interest only so on $20,000 @ 6% you are paying $100 per month to cover the INT. %26amp; $700 to principal. The first month you have paid $200 more to principal %26amp; it will keep going up as you pay down the balance and less goes to INT. Also, the INT you pay on a HE is more than likely going to be tax deductible just like your mortgage. Go to your bank and ask to speak w/a lending specialist and they should be able to give you more information. You could also choose a HE loan which would offer a fixed payment, fixed rate, and a fixed term. Either way you are cutting down the total INT paid and if you can still afford to pay what you are monthly on a CC then you will have that balance p/o a lot sooner.

Is it a good idea to take out a home equty loan or line of credit?

I have seen so many people do this and then almost loose their house because they were not smart enough to cut up and close the credit cards they decided to pay off. I am not saying that you would do that, but just be very careful that you don%26#039;t fall into the same trap as most people do. Close all the credit cards that you don%26#039;t need and do not go out and get another one. The only way that I would suggest getting a heloc or helo is to make improvements on your house that you know that you can afford otherwise don%26#039;t do it. I also believe that you should do the opposite of what the media tells you to do.

Is it a good idea to take out a home equty loan or line of credit?

I have tried it myself, here is some good informations.http://homeloan.online-assistant.info/pe...

Is it a good idea to take out a home equty loan or line of credit?

Bad idea.

By moving debt from credit cards to home equity loan, you%26#039;re making the following offer to the banks:

%26quot;If you%26#039;ll cut my interest rates, I promise that if I can%26#039;t pay you back at any time in the future, you can take my house.%26quot;

You%26#039;re better off just attacking the debts without risking the house. Consider the higher interest rate an extra incentive to pay it off as quickly as you can.