Article: Widsom of Home Equity Loans May Not Always Work

Financial experts shake their heads and cluck their tongues when they talk about consumer debt statistics. Consumers are paying off most types of loans, but they still have substantial balances on their credit cards, these advisers sigh.

If you must borrow, you ought to borrow against your home, not your credit cards, most advisers will tell you. That's because the interest paid on home equity loans is usually tax deductible. By and large, the interest charges are more reasonable, too.

That's what's called "conventional wisdom." But beware. Conventional wisdom doesn't apply to everybody.

Those who have significant debts are certainly well served by the conventional theory. It can, in ...

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