Home equity or as my bank calls it flex line
I’m 65 solo own my house free and clear . Having credit cards debt 14000 plus is it a good idea to take a loan out with lower interest rates and payoff these credit cards and use my house now as collateral
Terry Says
It would be a much better idea to earn some money — from anything you could do — such as driving a neighbor to the store, or working part time in a low-paying job — and paying off that debt.
Going into a home equity loan is just jumping from the frying pan into the fire! Yes, the interest rate will be lower, but the debt will still accumulate. And many of those loans charge only interest, making the payments look attractive. But then after a few years, you owe the entire amount.
Please, find a way to earn money and pay off this debt. Here’s the secret formula: If you pay 2X the minimum monthly payment EVERY month, and don’t charge another penny, you will pay down the balance in less than 3 years!
