Skip to main content
No. of Recommendations: 0
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.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.