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Article: MONEY MONDAY: Juggling debt; Paying off credit cards with home equity loans has pluses, minuses
- Article from:
- New Haven Register
- Article date:
- July 23, 2007
- Author:
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Copyright informationCopyright 2007 New Haven Register. Provided by ProQuest LLC. (Hide copyright information)
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When facing mounting credit card balances, taking out a home
equity line of credit can sometimes allow borrowers to get back on
solid financial ground while paying lower interest on their debt.
However, financial experts warn it is not the best option for
everyone.
Transferring debt to a home equity loan, which typically has much
lower interest rates than credit cards, can help consumers pay off
their credit cards more easily, according to Bill Hardekopf, CEO of
LowCards.com, a Web site that ranks credit cards and lets consumers
compare various cards based on interest rates, annual fees and other
criteria.
Depending on their credit status, the loans could let consumers
borrow 75 to 85 ...