Mail that makes me shudder
I rarely get credit card offers, but yesterday I got something that made me give a mental shudder. It looked like a credit card offer, but instead it was a Visa card that was tied to a home equity line of credit. It even had the little fake plastic credit card attached to the offer.
I thought oh, just what someone needs, to be able to access their home equity at any place that takes Visa. (Imagine trading your home equity for lunch at McDonald’s, or a new pair of jeans at the mall.) Of course the offer is all about “saving hundreds of dollars”, “consolidating bills”, and possibly having the interest be tax deductible. Into the shredder it goes, after I call to get my name removed from their list.
There is a great way to use a heloc and a credit card but not the way the bank wants you to.
While not wise to spend it at McDonalds, a Home Equity Line is very useful. For one thing, it’s something that doesn’t cost you anything to have unless you spend it – you only pay interest on the amount you use. If you’re going to make improvements on your home or pay for a college education or sometimes even finance an automobile, it is a tax-deductible way to do so without paying a very high interest rate.
As with all credit, if you abuse it, you’ll get into trouble, but if you use it wisely, it can help you.