attack this debt the smart way? The credit card has a pretty good fixed rate. The home equity loan is adjustable and it is creeping up steadily. So far, I've been paying extra on both debts. Would it make sense to pay more on one than the other?
2007-01-20 15:31:13 · 5 answers · asked by puter_patty 4 in Business & Finance ➔ Credit
Pay on the credit card debt. The interest on your home eq is tax deductible, so it helps with your IRS taxes at the end of the year. The credit card is not.
2007-01-20 15:42:51 · answer #1 · answered by amy23 3 · 1⤊ 0⤋
Another approach is to refinance and stay away from the adjusted ARM and go to a fixed interest rate (5-6% presently if I remember correctly)
Refinance the credit card debt into the refinance to get rid of the higher interest rate over time ratio.
6% over several years is a lot less than 15% - 29.99% for a credit card.
Besides, paying on one debt rather than two will be less initially, but if you pay extra on the one, you will have more cash going on the principle and less on interest compared to having a higher interest rate credit card with an adjustable ARM creeping up.
2007-01-20 16:10:08 · answer #2 · answered by Dee_Smithers 4 · 1⤊ 0⤋
My personal opinion is to clear the equity loan first. If you default on the credit card, your credit will be affected. If you default on the equity loan you'll lose your house.
2007-01-20 15:39:31 · answer #3 · answered by Anonymous · 1⤊ 0⤋
in the adventure that your vehicle and mastercard costs of activity are greater than 6% (which they frequently are) you would be greater advantageous off disposing of the residing house loan and paying off the vehicle and cc debt. although you could ingredient in any expenditures incurred to take out the fairness loan. stable good fortune and need this facilitates.
2016-10-31 21:23:37 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Put more money to the smallest balance. When that gets paid add that payment to your monthly payment for the larger balance.
Stop buying stuff.
2007-01-20 15:41:35 · answer #5 · answered by Anonymous · 1⤊ 0⤋
being in debt sucks. use this site to get quotes on debt consolidation. you'll be debt free in no time!
2007-01-20 21:35:05 · answer #6 · answered by xx s 1 · 1⤊ 0⤋