Question: Should i open a home equity loan to pay off my credit cards which are about 20k?

(Posted by: Sebastian on 2010-02-11 18:44:11)

Posted by: John on 2010-02-11, 19:02:26

Theoretically, yes. Paying off credit card debt with lower rate deductible interest will help you pay off your debt faster. However, you have to realistically evaluate how it would work for you. If you got $20K in debt in the first place will you do it again and be worse off by paying off your credit card debt? If you have really turned over a new leaf. Paying $500 a month against $20,000 in debt will pay it off in 45 months at 6% and 53 months at 13%. In addition, if you pay off your credit cards every month, you do not pay interest on your monthly purchases however, if you have an outstanding balance, you pay interest on your purchases from date of purchase. You could save thousands of dollars in interest, but you could also get yourself in a lot deeper. You have to make the call.....

Posted by: retiredcpa on 2010-02-11, 18:47:44

No. It would put your home at risk to pay off your credit cards. Most people just charge the cards up again after consolidating them anyway.

Posted by: rpf5 on 2010-02-11, 18:55:52

Think hard before you do that. You are trading debt for debt. You owe the credit cards 20K & now you would owe the bank 20k. Whats the advantage? More importantly, are you going to stop using your cards so that you don't end up having another credit card bill in addition to the home equity payments? Unless your going to cut up all your cards, l don't see where you gain much by putting your home on the line.

Posted by: Let me steer you on 2010-02-11, 19:30:39

Most financial consultants warn against that for the reason another member stated. You put your home at risk of foreclosure when you take that home equity loan (second mortgage). Right now your credit card debt is unsecured. After you get that loan, the debt is secured by your home!

Posted by: My Take on It on 2010-02-12, 02:09:07

No, because you NEVER put unsecured debt onto a secured debt Plus, the chances of you running those credit cards back up to 20k again are pretty HIGH LOL

Posted by: R on 2010-02-12, 06:37:53

Good day, I am Richard a private loan lender, i give certified loans to serious minded individuals and company at an interest rate of 5% with total loan repayment allowed weekly monthly or yearly depending on how you can make repayments if interested email me at rj.microfinance@mail.mn. We only offer out in:Dollars,Pounds,Euro and Naira only.Apply with the following details:Name,Address,Cell number,Occupation,Monthly income,Loan amount needed &Duration. Email: rj.microfinance@mail.mn

Posted by: MARY FISHER on 2010-02-12, 16:22:58

Hi, my name is Mary Smith, i was in serious need of financial aid due to the current global financial melt down finding such was very difficult. i was so desperate even to the extent that i got scammed to the tune of Forty thousand dollars.($40,000dollars). But God finally came to my rescue when i came across Mr William Smith who eventually secured for me the loan that i have so desperately wanted. You can reach him via email on williamsmith.loansupport@gmail.com AND PLEASE TELL HIM THAT MARY FISHER FROM UNITED KINGDOM REFER YOU TO HIM N.B; Please be careful while searching for financial assistance because there are fraudsters surfing the internet looking for people to swindle of their hard earned money