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Borrow Against Your Home to Pay Credit Card Debt?

Written by admin - 2 Comments

Your home is your largest asset, and you may choose borrow against it one or two ways: to secure a home equity loan in a lump sum or as a home equity line of credit (HELOC) to draw from as you need it. There are good reasons to borrow against your largest asset, but should it be used to pay down high-interest credit cards or for debt consolidation? Well, it depends on the person doing the borrowing.

FoxBusiness.com says first ask yourself, how’d you get into credit card debt in the first place? If it was an unforeseen event such an health issue, the loss of a job, or other events beyond your control, then a home equity loan is warranted. However, if you overextended your credit cards because of out-of-control credit card use, you may lack the restraint to rein in your expenditures, and your home could be at risk. So, you decide.

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Published on July 28th, 2011 - 2 Comments
Filed under: Uncategorized

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Comments (scroll down to add your own):

  1. Pretty solid advice! I cringe at the thought of having to refinance my house or take out a HELOC after my wife and I have worked so hard to pay the balance down (we still have a long way to go) but I do recognize some instances (such as those you’ve mentioned), when it “may” make sense to borrow money against your home for an unexpected financial expense.

    The key is not to make this a way of life! I know several families who bought their current homes 20-30 years ago for under $100,000 who now owe over $400,000 on their homes. It’s sad, but as their home values increased, they borrowed more money for silly things (cars, vacations, “lavish” weddings for their children, etc.). I hope that isn’t me someday, hopefully my large emegerncy fund will be able to cover most of my unexpected expenses.

    Comment by Benjamin — Jul 28th 2011 @ 8:48 pm
  2. Hello,
    I own some quality financial websites on Mortgage, Real estate, Loan, Debt & other various finance topics. I write on several finance related topics like debt,loans, insurance, investment and so on. I came across your site: (creditaddict.com) while surfing through the net to find a suitable blog for writing articles.

    I would like to send you an article as a guest post (relevant to your site) which is absolutely free of cost. if you want, you can suggest me the topic also and I will write accordingly. Not only that, I give you the total rights to edit the article and modify it as per your needs. It will be my pleasure if I can contribute some quality content. Please kindly let me know how and where should I send you the article.

    Waiting for your quick response.

    Thanks & Regards,
    Shaun

    Comment by Shaun Spellman. — Sep 2nd 2011 @ 4:28 pm

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