Should I pay off my credit card's with my home equity?

Question

We have a home equity loc for 15k and we owe about that in credit card's. As of now I have three and I have very low interest rate's on all three. One is 0 for a year (the big one). Am I better off with the loc so I can write off the interest?

Answer 1

This is a very bad idea unless you racked up the credit card debt due to a major illness or other emergency.

The reason you should not do this is because unless and until you have better control of your spending habits, you're going to simply ratchet up that balance again down the road, and you will have a double whammy of both credit card debt and a home equity line of credit to pay off.  

You're better off buckling down, figuring out how to pay off the credit cards and changing your spending habits.

<edit> Based on the new information you provided, it wouldn't be a bad idea.  If you're not using the cards and have been paying them down pretty fast, then you might as well take advantage of a lower interest rate.

Answer 2

I personally do this.  I use my home equity LOC for my Graduate school tuition, and I also had a very large major purchase on my credit card.  My credit card accrues Disney Dollars-so that is my incentive of using the card.  But then I pay the balance with my LOC.  The LOC is also much lower interest than the credit card.  So I figure I owe the money anyway, I might as well use the account with the lowest interest.  

Good luck!

Answer 3

I would say no because you are trading  unsecured credit for risking your home.  But, attack those credit cards,  and do what our grandparents tried to tell us.  Just buy what you can afford.  Listen to Suze Orman and Dave Ramsey.  I learned the hard way.  Glad I started listening.  Ask them what the best way to do it would be.  Suze is on CNBC.  Good Luck.