Don't swap equity for credit card debt

Q: I have a home equity line with a variable rate that is about 8 percent now. The balance is down to about $33,000. I have several credit cards with high limits, which are advertising low fixed rates until debt is paid. Should I move the debt into a couple of those?

A: You are not the first person to ask me this question, and my belief is that there are tens of thousands of homeowners asking the same question -- for good reason.

Until last year, we had become accustomed to interest rates falling, not rising. A huge number of homes were sold using an equity line or a mortgage that was pegged to an index.

Credit card companies read the papers, too, and they have responded with fixed, low-interest-for-the-life-of-the-loan products. I want you to focus on the definition of "fixed," before you act.

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