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Article: Equity loans still cutting into profits.(Debt Collection & Risk)
- Article from:
- Cards & Payments
- Article date:
- August 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Credit cards eventually will attract more revolvers after essentially being shut out the past five to six years as cardholders have used low-interest, tax-deductible home-equity loans to pay off their credit card bills.
But for now home-equity loans, which are secured by the borrower's residence, still are a much better deal if the borrower itemizes his personal income taxes, observers say.
But even that advantage is dwindling. "Homeowners dined at the home-equity buffet table when loans were 4% and property values were rising 25%, but things have changed," says Greg McBride, senior financial analyst at Bankrate.com, a Web-based aggregator of financial ...