Savvy Spender
Live Well For Less

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    Tuesday, November 01, 2005
    Never be afraid to get or use a HELOC (home equity line of credit) - as long as you are smart about it. The interest is normally tax deductible, so the current line of credit rate at 6.5% is really only like 4+% after your tax deduction. As long as you do not borrow more than your home is worth - or as long as you know you can make the payments even if interest rates jump - I think HELOC's are wonderful. If you pay off $8000.00 credit card debt you are carrying at say 15%, you could save over $800.00 a year after taxes with your HELOC right now!!! (I use the $8000.00 figure because that is the average debt people are carrying on credit cards.) Take the savings and pay down the debt rather than giving your money to the bank in interest!!!