Saturday Critical Action – Tap Home Equity to Trim Other Debts
Welcome to the Saturday Critical Action. Each Saturday we take the weekly action from Jonathan Clements‘ blog Humble Dollar and “militarize” it for you. Jonathan Clements was a longtime personal finance columnist for The Wall Street Journal, and he offers great advice at the best price you can get…free. Here is this week’s critical action:
TAP HOME EQUITY TO TRIM OTHER DEBTS. If you have high-interest auto loans or credit card debt, you might set up a home equity line of credit and then use it to pay off these higher-cost debts. That’ll reduce the interest you pay. You won’t, however, save on taxes. Thanks to the new tax law, such home-equity borrowing is no longer tax-deductible.
If you are interested in this, most banks and credit unions, including ones that cater to the military, will offer these loans. USAA, however, does not. Navy Federal Credit Union and PenFed Credit Union both do.
Anyone looking for help managing their debt can start at Step 4 of our Steps to Financial Security – Manage Your Debt.