pay off credit card debt with home equity
If you have a lot of outstanding credit card debt and you have significant equity in your home, you may want to consider taking out a home equity loan to pay off the credit card balances.
My friend's parents recently did this and it saved them a bundle in interest charges. They owned their home outright and took out a $30,000 home-equity loan at about 5% over 10 years. They used the money to pay off their credit cards and do some neccessary repairs on their house. Their monthly payment is only a little over $300.
You can do the same. Just do the math. If you are paying 10%, 15%, 20%, or more...you can easily save hundreds or even thousands of dollars by taking out a home equity loan.
Plus, the interest on a home equity loan is usually tax-deductible, so you will save money at tax time.
I would suggest checking out a few banks and compare rates and fees before taking out the loan.
My friend's parents recently did this and it saved them a bundle in interest charges. They owned their home outright and took out a $30,000 home-equity loan at about 5% over 10 years. They used the money to pay off their credit cards and do some neccessary repairs on their house. Their monthly payment is only a little over $300.
You can do the same. Just do the math. If you are paying 10%, 15%, 20%, or more...you can easily save hundreds or even thousands of dollars by taking out a home equity loan.
Plus, the interest on a home equity loan is usually tax-deductible, so you will save money at tax time.
I would suggest checking out a few banks and compare rates and fees before taking out the loan.
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