Ask Terry Questions Credit card debit, mortgage & new roof

Credit card debit, mortgage & new roof

By Terry Savage on September 20, 2023 | Credit/Debt

With a fixed income family, $34,000 remaining to pay off, with but a need for a new roof. But we have considerable credit card debit. But should we use the equity in the home to purchase a new roof and pay off debit or what do you suggest? Please and thank you for your advise.

Terry Says

Whew, this is a tough decision. Credit card rates are almost all over 20% today — and once they have you hooked they can raise rates to nearly 30%. That’s a recipe for financial disaster. Are you a member of a credit union? They might provide a lower-rate home equity loan. But that, too, must be repaid.

However, since you don’t have the option to wait if you have a leaky roof, that’s the route I would take. Don’t give up your current low-rate mortgage. But see if you can get a home equity loan for the additional amount. And do get competing bids to fix your roof!

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