Are personal loans or home equity loans better for consolidating bills?
For consolidating bills, home equity lines of credit are generally lower APR and the interest is tax-deductible. The reason that the interest is lower is because this is a secured loan. You don’t end up risking your house with an unsecured personal loan, but you’ll pay more with it. What APR are your current debts at? You may be able to get a low interest rate for the life of the balance transfer as long as you can make at least at least the minimum payment on time every month. This can sometimes be a lower APR than a home equity line of credit would be. Also, try not to add to your debts if you can avoid it.
