Credit cards

My wife and I owe about $10,000 in cc debt at about 14%we bought a home 6 mo ago, and I pay 2x the monthly minimum on the cc, should I take out a home equity loan or should I refinance?

Thanks Gordon, I have been on this forum for a long time, and I find more of value in what you say than anyone in all these years. I have cut up the cards, and cancelled the accounts, I am out of that debt game. I just alwats would pay them down to build them back up, horrible circle.

And Gordon, I shouldn't re-finance?

Interesting, I didn't know you could deduct interest paid on a home equity loan. Thanks, Gordon.

You can deduct home equity interest, but technichally the interest your deducting is supposed to be related to your home. Transferring $10,000 worth of partying debts into a home equity loan wouldn't technically qualify for the deduction :)

That being said, everyone does it and I wouldn't be worried about claiming the interest as a deduction.

Sometimes its not about the higher interest with your debt..if you get serious and pay down the debt like crazy the 14% wont make much enough difference to make the hassle of getting another loan worthwhile.

TheGregor is correct. You just nuked positve credit histories. We put ours in a safe deposit box at our old bank location which is across the city. Quarterly, we'll have a "shopping day" and put a few hundred on em to keep activity... Usually paid off by the next quarter. So it's more of a charge card to us.

But it keeps the financial discipline and is available for emergencies.

Wow!

I didn't realize that either.

damn, I f'ed up, but they wanted raise my interest rate to 24%

I question the info on canceling CC's as messing up your FICO. I have FICO in the high 700's and have no CC's. Found this site and its a little vague, it does say that canceling a card wont remove it from being figured in your FICO but having no cards wont help you (Didnt hurt me tho)


www.myfico.com/myFICO/CreditCentral/ScoreConsiders/Tips/AmountsOwedTip.asp