Home Equity Debt Consolidation Loan

Is it wise to pay off credit card debt with a mortgage loan?

Is there a better option? My credit union is offering a consolidation loan and saying that the average in our area is about 13.87 percent.

A secured loan mortgage, although often presented as a good way to pay credit card debt, especially in areas where homes have greatly increased in price, however, you should know that, technically, the interest on a loan of these is NOT considered deductible by the IRS unless the loan is used to improve property. You probably would say that anyway without the IRS audit you, but it could happen, and if so, you have to pay taxes arrears, plus interest at the IRS. This is a position that seriously want to avoid. Secondly, you are betting against your home you can afford this loan, Are you willing to close all credit accounts if you take the loan, so do not be tempted to run the balance back? You will not have a way to pay again if you do. Remember that you are possibly get in the position that, if you need to sell the house for some reason, he had lost the capital you have earned during the entire time I've owned. Is this a good risk? I have done, and not long after, the prices of homes in my area dropped. I've been trapped for some time until prices rose again, and he would pay the balance of the first mortgage, plus the balance of home equity loan, and when prices finally came back up enough that I could afford to sell, much less when I have sold my house I could have. Therefore, to very soon unless you can pay the home equity loan, and you know you can resist using your other credit again, it's risky.

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