I have been working on our non-mortgage debt ... mostly credit cards. We have a few credit cards with ~$10K left on them, north of 8% rate.
I have been thinking of getting a HELOC, to consolidate this debt and others (furniture loan, etc).
That plus, I think it would be a good idea moving forward into retirement to have a HELOC available for emergencies.
The interest is tax deductable, as is mortgage insurance so, this helps reduce the effective rate.
Is this a smart idea? Do other folks maintain a HELOC as they move into retirement?
Thx,
Rob
