Ask Terry Questions Credit Card Debt

Credit Card Debt

By Terry Savage on August 29, 2018 | Credit/Debt

On WGN this morning you suggested not taking money out of a 401k to reduce credit card debt to which I totally agree. If the person owns their home (outright with no mortgage?) wouldn’t it be better to get a loan against the equity in the house which would be less than the interest rate on a credit card?

Terry Says

Home equity loans carry floating rates — and I expect rates to float UP! Besides, it’s just too tempting to have all that cash available. I much prefer the pain and discipline of paying down a balance, and learning a permanent lesson about the dangers of debt!



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