Should I use my home equity line of credit to pay off my car loan and part of my student loan?

By using the HELOC, it%26#039;s going to free up several hundred dollars per month, and I can claim it as a tax deduction at the end of the year. On the other side, I%26#039;m eating up a sizable amount of home equity by doing so. I%26#039;m planning to pay them off either way--I can do it now with the HELOC, or after I sell my house, with the cashed in equity. Which route should I go? Does it make a difference?

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

Generally speaking, debt is debt, so whether it%26#039;s debt on your HELOC or a student loan or car doesn%26#039;t matter. Using your HELOC is usally a better deal because the rates are lower and as you mentioned, you can deduct the interest. The only thing I would caution is if the property values in your area are going down, you may not want to extend your HELOC too much and end up with either no equity or oweing more than the house is worth.

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

Do it only if the interest rate is lower by doing so. If not, why pay out more money than you have to?

Good luck and have a great day!

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

Don%26#039;t you think it%26#039;s really a bad time to sell your house now. The house prices have come down so much. I suggest you to go for Home equity loan. We have compiled very good home equity loan offers at, http://www.SlashYourRate.com

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I hope my suggestion helped you.

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

If you do not have to use your equity better. Also, that is what equity is for. Also, when you pay off on the car loan will be less than because the interest rate will be decrease or negotiage with them because you are paying off the loan on the car. School loan because you are paying off early it will not cost as much over a long term depending on what type of loan.

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

If the interest on your home equity line of credit is less than that of your car loan and student loan, I%26#039;d say GO FOR IT. You%26#039;ll save money on the interest.

But if not, don%26#039;t go for it, because then you won%26#039;t save any money and it%26#039;ll look very obvious that you%26#039;re simply shuffling debt around. Plus, it%26#039;ll lower your credit score because the home equity credit will be a new account. Part of your credit score is determined by %26quot;length of credit history,%26quot; which includes the average(mean) age of each open account. A new loan has an age of 0 mos., which will lower your average account age, and likewise lower your credit score!

If you%26#039;re concerned about rising student loan rates, you can always consolidate your student loans. This will lock your loans into the current rate(or slightly lower). It only takes minutes to do, and as long as you haven%26#039;t had any student loan defaults, you will be automatically eligible for this.

Should I use my home equity line of credit to pay off my car loan and part of my student loan?

The drawback to doing this is that you loose the deferment option that is enrolled into student loans. For example, should you come upon hard times, you can defer payment of your student loans until a later date. If you roll that debt into a home equity loan, I doubt that you%26#039;ll retain the deferment option, should you ever need it. Have you checked into student loan consolidation? If you have multiple student loans to pay, this would help reduce the amount of checks you need to write, resulting in a lower monthly payment and still give you the deferment safety net.