Advantages and disadvantages of consolidating debt isotopes as tracer in carbon dating
Even though you’re borrowing your own money, you have to pay it back within five years.
Otherwise, the Internal Revenue Service will tax you and charge you penalties.
The key is to fix the problems that got you into debt.
Borrowing from your 401k is an option, but not a good one.
If your monthly payments are smaller under debt consolidation, that’s because you might have extended the term of the loan, meaning it’s going to take you longer to pay it off, possibly costing you more in interest charges over the long term.Taking out a home equity loan or a home equity line of credit can get you a lower interest rate than what you currently pay on your debts. Your home is on the line and if you miss your payments, you could lose your home.If you are teetering on the verge of bankruptcy, your credit card debt can be erased if you file, but home equity loans can’t.In a down housing market, draining your equity by taking out a home equity loan puts you in a bad spot if you have to sell your home. And, credit counselor Chris Viale told Bankrate.com, you are likely to wind up with the same or higher debt load once you get the home equity line.