Home Equity Instead of Credit Cards?
I’m still waiting for paperwork to come in so we can finish our taxes. I just got our home equity statement in yesterday and am amazed at the amount of interest we pay. We have a great rate, but still end up paying most of the payment toward interest, typical for a relatively new loan.
When we got that loan, we knew what we were getting it for. We were not going to pay off credit cards or the car, but I’m always amazed at people who do that.
How does it make any sense to get a loan for 20 years (or even 15 years) and use some money to pay off credit card debt? Of course, coming from the mindset of owing $5k on credit cards. It probably would make sense for those who owe a lot more, considering the low interest rates equity loans have had. I’m not sure if we had a lot of debt, if my husband would have been comfortable taking the equity in the house. I would probably much rather keep my eye on credit card news and play the credit card game. I’ve seen others play the game of shifting money from one card to another and getting 0% balance transfer offers.