What to do, what to do?

[Anonymous]

I just got off the phone with HFC where we have a 10K loan @ 32.99%.  I asked for a rate reduction and was told that it could be done, but was not given the rate will get a call later.  Anyway a suggestion was made regarding a line of credit (HELOC) or refinancing our 1st and paying off debt through them.  Is this a good idea?  I told him that I was concerned about getting a good rate and wasn't sure if this was a smart move.  I needed to hear from you all about suggestions on what to do since you are the FICO PRO's...

Thanks

[Anonymous]

This is a personal finance question more than a FICO question.

I'm sure HFC thinks it's a good move (for you to pay off your debt with a HELOC) because it means they get paid.  It may not be a good move for you.  Some people say you should never trade unsecured debt (credit card debt) for secured debt because if you get into trouble and can't pay it, you can lose your house.  On the other hand, paying over 30% in interest is obscene.  Wait and see what HFC says about a reduced rate.

[Anonymous]

Won't do the rate reduction unless I do a Heloc or closed end loan with them.  We have had the bad experience of a 2nd mortgage and it nearly ruined us, so we are not going to to that route.  We will have to wait and work it out.   Thanks Mas...

[Anonymous]

I am just amazed at 32.99% interest....Good luck...