Equity Loan Information
Can I use my HELOC to pay credit cards and deduct interest?
I have a first mortgage debt of 168k. My home is worth 280k. I have an unused HELOC of 100k. There are no liens or any other debt associated to my home. This is my primary residence. Can I used some of the HELOC to pay credit card debt and deduct the interest in tax return?
Public Comments
- yes...but it sounds like your problem is over extending yourself with credit....once you tap that heloc, if you get in a situation where you cant pay, of course you know they can take your crib....which they can't do if you only have credit card debt.
- According to the book below (see source), HELOCs have mortgage liens on your property and have far worse consequences than credit cards if they are not paid. If you are in a financial situation where your interest rates on the HELOC can reduce your debt and allow you to pay your HELOC down in the future, then it might be a wise option.
