Monday Blend
By Brian Williams on Monday, July 16th, 2007 :: 3:42 pmCategory: Online Articles, Financial News
Today there’s a lovely blend of financial advice to satisfy your pecuniary cravings. Smartmoney.com fills us in on so-called “good” credit card debt. Bankrate.com has a tip on how to save on your electric bill AND get a tax credit. In that vein, MSN Moneycentral has tips on saving money by keeping cool without the AC and explains why we should ditch our bank for a credit union.
Smartmoney Blend
Aleksandra Todorova at Smartmoney.com shows in her article “When Credit-Card Debt Is Better Than Home-Equity Debt” that sometimes credit card debt is better for your financial health than traditionally more respectable home-equity loan. She cites the example of a young couple who, unable to refinance their mortgage because of their home-equity loan, transferred their loan to a credit card with a lower interest rate. This makes sense because interest on home-equity loans is increasing, while credit card lenders are constantly lowering their interest rates to attract new clients.
Tadorova advises to watch out for balance transfer fees, which can be as much as 3% to 4% of the transferred balance. Also be prepared to retire the card you’ve transferred your loan to. And be prepared for higher payments; credit-card loans are amortized over a shorter amount of time than home-equity loans, which means you’ll pay more each month over a shorter amount of time.
In essence, this is a type of debt consolidation, about which you can read more on our site.
Related Debt Consolidation Articles
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Some credit counselors will claim you can use debt consolidation with little worry or risk if you borrow against your retirement savings. - Control Your Debts
The average American household owes nearly $10,000 in credit card debt. - Gain Financial Stability with Our Debt Solution
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Numerous consumers may need debt relief more than they realize.
