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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Getting Serious Date:  10/15/2005  4:27 PM
Author:  Xenonax Number:  212580 of 312992

Trading unsecured debt for secured debt can be a smart move when, as you have, you have stopped using debt. However your decision to keep advancing the HELOC is probably not a good idea. I would use it to get some room on the cards and then stop. Most HELOCs, like CCs are tied to the prime rate and Greenspan has given no indication that his love affair with interest rate hikes is going to change. You could end up in a far worse situation than you are now.

You have an excellent point. Let me clarify one thing, though. The line of credit that I am referring to is simply an open-ended unsecured loan. I have a $7,500 line of credit which is in no way tied to my home. Perhaps that makes it slightly more paletable? Thanks.

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