| The majority of Americans carry some sort of credit | | | | credit cards will result in a consolidation of your debt, |
| card debt. Unfortunately, many of us carry so much | | | | making it easier to pay. |
| debt at such high interest rates that it becomes difficult | | | | Additional benefits of refinancing credit cards with |
| to make a difference in the amount we owe, even | | | | home equity include:eliminating variable interest rates |
| when we send a payment to the credit card company | | | | and getting a fixed interest rate obtain a tax benefit |
| each month. Falling behind just makes it worse, with | | | | with an interest rate tax write-off on home equity loan |
| late fees and finance charges added on to your next | | | | interest that could not be done with credit card interest |
| statement- and often a late payment will result in an | | | | consolidate a number of monthly payments into a |
| increase in your interest rate. High interest rates quickly | | | | single, often lower, payment easier record keeping, |
| add up and result in our monthly credit card payments | | | | write and mail one check a month and make one |
| doing little or nothing to reduce the balance. It's a vicious | | | | transaction in the check register rather than multiple. |
| cycle that can be difficult to get out of. | | | | Disadvantages of Paying Off Credit Cards with Home |
| One effective solution for getting off the credit card | | | | Equity Loans |
| rollercoaster if you are currently a homeowner, may | | | | Like everything good in the world, there are also some |
| be to obtain a home equity loan and use it to pay off | | | | disadvantages to using a home equity loan to pay off |
| your high interest credit card debt. Homeowners often | | | | credit cards, that you'll want to consider, though. For |
| take home equity loans to make home improvements, | | | | example, once you pay off the credit cards, you |
| figuring that the improvements will increase the value | | | | suddenly have lots of room on them to charge new |
| of their home and therefore make the loan worth it, | | | | purchases! This can be extremely tempting, and if |
| but why not take a home equity loan to eliminate high | | | | you're not disciplined, you could end up charging more |
| interest debt and make it easier to pay your monthly | | | | debt and making your situation even worse (because |
| expenses? | | | | now you have the home equity loan PLUS the |
| The Benefits of Refinancing Credit Cards with a Home | | | | additional high interest credit card debt!) |
| Equity Loan | | | | It's a good idea to either get rid of the credit cards by |
| There are a number of benefits of credit card | | | | cutting them up, or by placing them in a fire safe box in |
| refinancing, with the most obvious one being the | | | | your home so that you aren't tempted to pull them out |
| decrease in interest rates you are paying. The other | | | | of your wallet when you're out shopping. Refinancing |
| primary benefit is the fact that you aren't incurring | | | | the credit card debt with a home equity loan can give |
| more debt when you pay off your credit cards with a | | | | you the opportunity to live credit card-debt free. Most |
| home equity loan - you're keeping the amount you | | | | financial advisors do not recommend calling to |
| owe the same and moving the debt to a more | | | | physically cancel the accounts right away, because |
| affordable repayment method. If you had previously | | | | reducing the amount of "available credit" will often |
| been struggling to make several individual payments | | | | have a negative impact on your credit score. |
| every month, using a home equity loan to pay off your | | | | |