I HAVE A BANK OF AMERICA CREDIT CARD DEBT OF $5,000, WHERE I KEEP TRANSFERRING MY BALANCE TO PAY ZERO INTERESTS . I HAVE BEEN MAKING PAYMENTS TO LOWER MT DEBT EVERY MONTH. I ALSO TOOK OUT A PERSONAL LOAN FROM DISCOVER OF $11,500 TO PAY OFF ANOTHER CREDIT CARD. I MAKE PAYMENTS OF $314.51 A MONTH AND LOWERED THAT $11,500 LOAN TO $7,882.61 AT A 13.94% INTEREST RATE. I HAVE GREAT A CREDIT SCORE OF 745. I OWN A CONDO. SHOULD I TAKE OUT A HOME EQUITY LOAN TO PAY OFF MY DEBT? CHASE SAID THEY CAN OFFER ME $50,000 HOME EQUITY LOAN. SHOULD I COMBINE MY DEBT? SHOULD I TAKE OUT A DIFFERENT LOAN TO PAY EVERYTHING OFF? ANY COMPANIES OUT THERE THAT CAN HELP ME LOWER MY INTERESTS RATE?

Terry Says:  Well, I wouldn’t suggest taking out another loan — even to consolidate — until you get a handle on your spending and budget.  Otherwise, you’ll just be digging yourself a deeper hole!  So before doing anything, get some credit counseling from the only agency I recommend — The National Foundation for Consumer Credit.  Call them at 800-388-2227, and you’ll be connected to the nearest local agency.  They can look at your specific situation.

In general, home equity loans currently have lower rates than any credit card.  But with many of them you are paying only interest — leaving yourself a big burden of debt — and vulnerable to rising interest rates when that happens.  So do get specific help to get out from under all that debt!