Home Equity Loan – Good Choice for Luxury Purchases?

Written by Charles Essmeier

Home equity loans or lines of credit have increased dramatically in popularity in recent years. One ofrepparttar reasons is that interest rates are at or near historic lows; borrowing money has rarely been more affordable. Another reason is that Americans are enjoying record amounts of equity as home values have skyrocketed in recent years. Given thatrepparttar 150068 loans are affordable andrepparttar 150069 equity is available, many homeowners are wondering if a home equity loan would be a good way to finance expensive lifestyle items. Would borrowing against your home be a good way to purchase that Dodge Viper you’ve always wanted? How about that aroundrepparttar 150070 world cruise you have always dreamed about? Is taking out a home equity loan for luxury purchases a good idea?

As with any financial transaction, there are good points and bad points to borrowing against your home to buy luxury items. The good points are numerous. Unlike a credit card or standard auto loan, a home equity loan offers deductible interest on your tax return, provided thatrepparttar 150071 loan does not exceed $100,000. If you pay taxes inrepparttar 150072 28% tax bracket, you are effectively getting a 28-cent rebate on every dollar you pay in interest. That is certainly appealing. The fees associated

Cash Back vs. Rewards Credit Cards

Written by Joseph Kenny

Ah,repparttar sweet rewards of using credit!

Not only do you get immediate gratification withrepparttar 150067 buy now-pay later plastic, but now, many credit cards offer rewards and incentives for using their card to make purchases. You can get cash back, or gift cards, or ‘reward points’ that you can spend on merchandise or services from various merchants. There are also cards that allow you to designate your ‘cash back’ points to a charity – sometimes called affinity cards – and those that put your cash back into a special savings account for college.

Great deal, right? You spend your money and get something in return. The catch is, of course, that you’re paying interest and card fees to get your cash back rewards. But if you’re going to be usingrepparttar 150068 credit card anyway, you might as well get something back out of it, right?

Most cash-back cards give you 1-2% cash back on most of your purchases. You’ll get a check at specified periods forrepparttar 150069 amount of your ‘rewards cash’. You can cashrepparttar 150070 check and spendrepparttar 150071 money on anything you want.

Reward cards give you 1-5 reward points for every dollar that you spend at different merchants and types of merchants. Most pay you 5 reward points for purchases made at their ‘Merchant Thank You’ network, and for purchases made at gas stations, drug stores and supermarkets. You’ll get 1 reward point for every dollar that you spend at other merchants. You can then redeem your reward points for particular items fromrepparttar 150072 merchants that belong torepparttar 150073 credit card’s merchant network.

Which isrepparttar 150074 better choice?

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