Quote:
Originally Posted by KC911
Yes, it is comforting to have house(s) paid off, but I can sure understand someone taking that approach with their mortgages or other appreciating assets (different strokes). CC debt is "usually" not used for purchasing appreciating assets, but rather for "living beyond one's means" for "most" people imo...a different game entirely.
|
Maybe I'm not understanding you. I'm only saying that, since interest on a mtg. and interest on a HELOC are tax deductible and MUCH less than credit card interest, it doesn't make any sense to me to pay high interest as opposed to low.
In general it definitely doesn't make sense to use a CC to buy appreciating assets (what assets can you imagine that dependably appreciate at a greater % than what the money would cost you on a credit card?). What I'm saying is that, whatever you used CC's for to build up a debt, it's simply money that you now owe and are paying back at an interest rate that is exorbitantly expensive compared to a HELOC.