No. of Recommendations: 0
dfsmith1: you wrote: "Thinking of using a home equity (bill consolidation) load with Providian to pay off all my credit cards...which is around $20,000. The deal with this company is that the rate is 7.5% plus the prime rate which is around 2.25%...therefore the "floating rate" is currently at 9.75%. That is half of what my current APR is with all of the credit card companies!! However, I am not too familiar on how volatile the prime rate has been over the past several years. To my knowledge with the economy doing so well, the prime rate has been very stable. Have we ever seen the prime rate above 7 or 8% over the past 5 years?"

I second the others about be certain that youhave your spending under control but will not elaborate any further.

More importantly, as paul/pwyles pointed out, prime is 7.75% so 7.5% + 7.75% would be 15.25% for the loan. 15+% seems high to me. Even Prime + 2.5% seems high when 17 year first mortgage loans are running around 6.5-6.75%. How comfortable are you with Providian as a lender?

In a very quick review none of my bookmarked sites show "prime rate" and its history. I know the prime rate is published in the newspaper at least weekly and there is probably a good URL but I do not have the time to run a search for you.

Good luck. Regards, JAFO
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