2006-10-24 10:43:45 · 2 answers · asked by Joel D 2 in Business & Finance ➔ Personal Finance
If that CC rate is fixed, its probably a bit of a wash. Home equity loan is probably deductible, but right now it'll run over 8%. And it also depends on your highest tax bracket.
If that rate is temporary, then the answer is "yes".
2006-10-24 10:53:03 · answer #1 · answered by thehiddenangle 3 · 2⤊ 0⤋
This depends on many things. If your debt is high and you are close to Bankruptcy, no. You have a good rate on the card, and an equity loan might be a bit less. The down side of an equity loan is that you are putting your house as collateral. If you ever have to file bankruptcy you can do so without losing your house even if you have a lot of cc debt. BUT if you overextend yourself on what you have to pay on a mortgage and the equity loan you will lose the house. I have seen this happen to people. If you are in serious trouble, do not take out a loan on the house. Even if you ruin your credit and make your mortgage payment on time every month you can keep your home no matter what.
2006-10-24 10:56:55 · answer #2 · answered by tonks_op 7 · 0⤊ 0⤋