Credit card debt relief
QUESTION: I do not seem to be making much progress toward paying down my credit card debt. Some months I am able to send in only the minimum payment amount. Would it be a good idea to get a home equity loan to pay off my personal credit card balances?
ANSWER: Interest will continue to be charged on your unpaid credit card balances. Therefore, the longer you carry unpaid balances, the more interest you will owe. If you make only the minimum payments, it could take you years to pay off your current credit card debt. If you keep on charging additional amounts that you can not pay in full, you may never pay it all off. Even after forking over thousands of dollars in interest, you could still find yourself saddled with a tremendous amount of consumer debt years from now.
Eliminating credit card debt can be a big step toward improving your financial well-being. One of the most effective ways to manage your personal debt is to establish and follow a budget. A realistic budget can help you reduce your spending. Budgeting could also make more of your existing funds available to pay down your credit card debt.
In addition to working within a budget, you may want to consider using the proceeds from a home equity loan to pay off your consumer debt. However, before you take out a home equity loan, make sure you have a reliable plan to pay it back. If you were to default on the loan, you could lose your home. Read More
