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Paying down debt


tetal
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My parents have credit card debt and mortgage payments. I wanted to know what is the best way for them to get rid of their credit card debt? I was thinking of letting them apply for a HELOC to pay of the cc debt, is that the best way? The reason I am asking is they would like to remodel the basement so someone could live down there. My understanding of a HELOC is it works like a credit card. So, they could borrow up to the maximum. So, if they received a $75,000 HELOC they could use, say, $20,000 to pay off cc debt and the rest to remodel the basement.

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they could do that. Some HELOCs give you a debit card as well as checks. Just remember to cut up the CC cards. And no more!!!!! And be careful as to the loan program you choose. Shop around, look at the payback provisions, make sure their needs for cash will be otherwise taken care of. Maybe they would be better off selling the house, banking the money, and doing some estate and long-range medical planning?

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