Equity Loans May Be Best Option To Consolidate Credit Card Debt – Tax Advantages and Lower Payments May Apply With Mortgage Loan

Many homeowners find themselves in the dilemma of too much unsecured credit card debt. The decision to refinance is not an easy one. Most people are hesitant to secure credit card balances against their home, but there are some advantages in doing so.

There are tax advantages in taking the debt from your credit cards and placing it into a home equity loan. Currently credit card interest is non-tax deductible, but interest paid on a home loan is. Always check with your tax consultant before making that decision because he is up to date on your situation and the current laws.

Before you decide on a lender, pick up the phone and call a bank. Ask them their interest rates. These rates will be dependant on your credit record of course, but it could give you a ball park figure. Start comparing these rates with your current home loan. If the rates are lower it might be a good idea to refinance your first home loan.

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