Financing Strategies and Debt Management

Free CFP Exam lesson in General Principles of Financial Planning. 17 min read, ~2,479 words.

HELOC interest is deductible only when proceeds are used to buy, build, or improve the home, the exam's favorite debt trap; otherwise the cost equals the stated rate. Consolidating credit cards with a HELOC eliminates the interest deduction and converts unsecured debt to secured, putting the home at risk. Refinancing...