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Home Equity
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Uses Of Home Equity Loan and Credit Line - Debt Consolidation
Many people rack up a lot of credit card debt and turn to home equity to ease the burden by using their equity to consolidate debt. Doing this can reduce monthly interest charges, because credit card interest rates often are more than 10 percentage points higher than rates on home equity loans and credit lines.
There's a dark side to using equity to consolidate other debts.You might be tempted to run up the credit card balances again, leaving you with big debt and no equity. It might be best to cut up all but one or two cards, stop carrying them with you, and use cash more often.
Read Chapter 7 Bankruptcy.
Read Wise Use of Home Equity.
 
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