1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will term you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have atleast 2 credit cards and 14% of them have 10 or more credit cards.
This Calculator will tell you the benefits
of consolidating all your high interest rate credit card debt
into 1 single low interest loan using your home
equity line of credit. You can enter 4 types of debts
including Credit Card Debt, Auto Loans, Student Loans or Other.
You enter the current principal balances owing, what interest
rate you are paying as well as the monthly payment amount,
and how many more months of payments are left. Then, enter
the home equity
loan information in the "New Loan Information"
section. Enter the interest rate you will be paying on your
home equity loan, estimate
of mortgage closing costs and expected Federal & State
tax rates. After, click on the "Calculate New" button
and you will see your savings and reductions in your monthly
payments as well as any tax savings.
