Debt Consoladation : Home Equity : Or Income Tax to Pay

nospam@example.com (ihavedebtproblems) — Tue, 02 Sep 2008 06:01:59 -0700

My debt question is about my Credit Card debts I Have Acquired: I have about $15,000 in 4 Credit Cards with an average interest rate of 17% to 18%. I want to pay them all off quickly.

Option 1. I have a big income tax return check coming my way in about 2 or three weeks I could use the money from my income tax to pay off my credit card debts..

Option 2. Take out a home equity Line of Credit from my homes equity?

Question # 1. Should I use my income Tax return money to pay off my Credit Card debts, would this be something I should think about? I just want to be debt free fast

Question # 2. or would it be better to try and get a home equity loan line of credit at a lower interest rate rate and pay the Credit Cards off with a home equity loan.

ANSWER : If you want to remain debt free, I would tear up my credit cards and I would use the home equity line of credit to combine my unsecured debts and lower the overall interest rate and start saving big bucks every month. you can combine all your monthly payments into one low easy payment, that can save you thousands of dollars a year. the other option is to try for a consoladation loan to try and combine these debts, you will want to be careful when choosing one of theses companies, you may want to shop around a bit to find the best.

Then I would pay off your high-interest rate, non-deductible debts first, because when you pre-pay a debt such as credit card debt, you're effectively earning the interest
rate the credit card debt carries on each dollar that is debted.

So if your current credit card debt is being charged at 18 percent interest rate, prepaying that debt actually earns you 18 percent return on your cash/money. That's a great way to invest your cash.

Once your unsecured debts are all paid off, then you will save the money/cash you would have paid each month in interest to the debts.

Debt Consoladation : Home Equity : Or Income Tax to Pay what are my options?

Bad Credit Debt Consolidation Loans Help for Free - Questions

Debt Consoladation : Home Equity : Or Income Tax to Pay