I've heard some talk recently about people wanting to sign up for home equity loans in order to pay off their high interest credit cards. I wanted to give some advice on the matter and let everyone know this is a VERY BAD IDEA! I'm only giving advice and not trying to tell anyone how they should handle their money but I wouldn't do it. If I did do it, I'd have to be pretty darn bad off with credit card debt and in way over my head. You're basically putting yourself at risk of losing your most precious asset if you end up not being able to pay the bill. I think we would all agree that being in credit card debt is bad enough without having to worry about losing your house on top of it BECAUSE of the credit card debt loan you took out against your house. Try to keep things as simple as possible and look at every possible resouce before you turn to your house. This, in my opinion, should be the very last resort! Managing money is not easy but if we don't learn, we'll never get ahead and we'll always be sinking further and further into debt. Think about it!
3 comments:
I couldn't agree more. Taking out a HELOC to pay off credit cards and other builds is a red flag that you're spiraling out of control in debt.
ExpertsOnCredit
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I think they are giving interest two time and it is not fair for the credit card customers.They could not give interest two time.You can also search more information to Plastic Business card.It is also nice information for all viewers.
I agree. The house is one of the biggest property and investment we have. It is not worthy to use for your credit card debts. There are many ways on how you could resolve your debts. If the debt is too serious for you to make use of the value of your house, the answer is still NO. If you can't handle your debts and it's out of control, or it's making you feel hopeless, don't give up. Seek help from professional advisers.
Andre Steinberg @Credit 360 Consulting
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