Credit Card or Home Equity Line of Credit?

I am a full-time graduate student with 3-years left to go. I have amassed about 7K of credit card debt. While I have gotten my finances under control to not get anymore in debt, I am having a hard time making a dent in my balance and I won%26#039;t be able to anytime soon. I also have a home equity line of credit and the minimum payments are much lower. Should I transfer my credit card balance to my home equity?

Credit Card or Home Equity Line of Credit?

The interest rate is the important thing to look at. In most cases a line of credit will have lower interest than a credit card and would be a good place to transfer your debt, but I%26#039;m not sure specifically about a home equity line of credit. You could always ask your bank about options.

Credit Card or Home Equity Line of Credit?

It partly depends on your interest rate on your credit card. You can call your cc and ask for a rate reduction, hopefully you have a good credit score and no late payments. You may also be able to open another credit card that offers a low or 0% interest on balance transfers. If you do have a high interest rate on your current credit card a home equity line of credit may benefit you temporarliy. If you only make the min payment it will still take forever to pay off your debt. The interest rates are usually adjustable on lines of credit. A home equity loan has a fixed interest rate. The other positive is that the interest on your home equity line may be tax deductable for you, the cc interest is not.

Credit Card or Home Equity Line of Credit?

There are several things that you should consider about the balance transfers.

The first one to look at is the interest rate of the two options. Which is higher?

Also check the penalties for late payment fees if this is a problem with your finances. Some credit card late payment fees are considerably high.

If you switch the balance to the home equity line is there still adequate time on your loan conditions to get it paid off. If you switch, there may be an income tax break for your by switching. The interest may be deductible. This is like adding money to your account.

And lastly, if the payments on the line of credit is lower, try to pay as much as you can to eliminate the debt as soon as possible. If you get into a bind at any given time, lower the payment for that time period.

I hope that this helps.

Credit Card or Home Equity Line of Credit?

Don%26#039;t turn unsecured debt on a credit card into something that is secured by your home. The difference in percentage rates is not worth the risk. Work a part time job in addition to what you are already doing, donate plasma, do what you have to do and pay that credit card off. If your credit is good you should be able to transfer your balance to a low rate or zero rate card for a while, as a previous poster mentioned.

Credit Card or Home Equity Line of Credit?

This should be given a good thinking before you do. I saw a useful site for you

http://pinchurl.com/bestcreditcard