Is it Really Wise to Tap into Your Home Equity for Credit Cards?

Credit card debt is something that seems to nag at virtually every household in the country, but does it really have to be that way? If you’re a homeowner with a certain amount of home equity in your home, the answer might actually be no. You see, you can always take out a home equity loan and pay off your credit card debt completely. In fact, some people think this is a better option because you can actually deduct the interest from your home equity loan, something that you cannot do with a traditional consumer credit card. The only exception to this is a business credit card, but then again you wouldn’t be using home equity money to handle that debt anyway.

Yet the question remains: is it really wise to tap into your home equity for credit cards? The answer might be a bit different than you expect.

Again, it really goes back to your overall financial goals. You don’t have to live in fear of the credit card companies, especially if you know that you will be back on the right financial path after paying off your credit card bills. You just need to make sure that you’re actually taking matters into your own hands rather than just thinking that it’s impossible to get out of credit card debt.

This approach also assumes that once you are out of credit card debt that you will not rapidly jump back into charging up all of your credit cards. If you’re going to do that, then you don’t want to go through getting a home equity loan. If you compare credit cards to home equity loans, the stakes are much higher with the latter. You see, if you default on a home equity loan, the lender gets to seize your house as collateral. They can then sell the house and try to recoup the loan in its entirety. This can be difficult for people to understand, but it’s something that has to be understood in order to really see the power of home equity loans.

Some people view home equity liens of credit and loans as something that’s sort of a double edged sword. This is actually a fairly accurate comparison, considering that you will need to make sure that you do your best to ensure that you use your tools wisely. A home equity loan is what you make of it. If you use it wisely, you will be able to rebuild your credit very quickly and get back on the right path. However, if you spend the money frivolously on things that you don’t need, you will only slide deeper into debt on the whole.

Overall, if you’re not sure where to go with your finances, you might want to sit and talk with either a credit counselor or even a traditional financial planner to get a more expert point of view — this is general advice, after all. However, if you know in your heart that you’re ready to make changes in your finances, then a home equity loan could be just what you need in order to pay those credit cards off once and for all!

Why Corporate Prepaid Cards are Vital for Businesses

In order to be successful, a business must be competitive and economical in all operations. One operation that often contains superfluous costs are the expenses incurred for business travel.

Below are a few reasons why Corporate Prepaid Cards can help reduce business expenses while making travel easier on your staff.

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Employee Benefits:

Staff will no longer have to use their own money to cover business expenses. This can often leave them out-of-pocket as it takes time for expense reports and reimbursement to be processed. Staff can also travel with peace of mind, with the additional security of using replaceable prepaid cards rather than cash. Continue reading “Why Corporate Prepaid Cards are Vital for Businesses”

Why you should consider payin your medical bills with a credit card

Many people are fortunate that they do not have to deal with expensive medical bills. Yet, there are those individuals who have so much medical debt that they need to pull out their credit cards in order to cover the debt. In some cases, their credit limit is high enough that all of the medical debts can be charged to one or more credit accounts. In other cases, people with high medical debts discover that they cannot pay for them even if they use all of their credit cards. Either way, paying medical debts with credit cards can lead to large balances on those credit accounts. Are there any good reasons for paying medical debts with credit cards?

Paying Medical Debts with Credit Cards: Convenience

Credit cards have become a convenient method of paying for all kinds of services including medical procedures, services, and behind-the-counter prescriptions. Most people carry their credit card with them no matter where they go, making it convenient to pull out the card in order to pay off a bill in person or over the phone.

Paying Medical Debts with Credit Cards: Financial Records

This method of payment provides consumers with a record of having paid the medical debt. For those consumers who obtain an end-of-the-year report on their credit-card spending for tax purposes, this method of payment provides an easy way to track medical expenses for a specific tax year.

Paying Medical Debts with Credit Cards: Buying Time

Not only is it convenient to pay for medical debts with a credit card, but this method of payment also provides a few more weeks to give up the money to cover the cost of the debt. In fact, consumers who pay attention to their cut-off dates on their credit cards can select the account that will provide the most time before the charge appears on a credit-card bill.

Paying Medical Debts with Credit Cards: Cash-Back Bonus

If the individual uses a credit card that provides a cash-back bonus, he can earn money that he can use to pay toward the medical debt that has been charged on the credit card. Depending on the type of credit card and the percentage that is earned on transactions, it is possible to earn enough to cover a minimum payment for that particular account.

For those consumers with lots of medical debt, finding new ways to pay the bills is often necessary. As cash reserves become depleted, credit cards begin to look like a good method for paying off that medical debt. There are certainly a lot of good aspects to it, and the most important of them are listed above.