There are many ways in which you can get legal credit card debt elimination. The only ways I can think of illegal credit card debt elimination is if you do something you shouldn’t do in bankruptcy court, such as maxing out your credit cards before your case is closed. Let’s forget about bankruptcy for now and look at some helpful tips for eliminating credit card debt the right way.

One option, which is often discussed, is eliminating your debt through cash-out-refinancing. When you cash out refinance, all that you are doing is taking out a new home loan to help pay off not only what you owe to your lender on your house, but your credit card debt as well.

You can also take out a second mortgage in the form of a home equity loan (HEL) or a home equity line of credit (HELOC). Although you may save money with this type of loan, you are putting your house on the line. If you somehow can’t make the monthly payments for a home equity loan, your house is in jeopardy of being foreclosed. A home equity line of credit (HELOC) is similar to a HEL. The main difference is that instead of the interest being fixed, like in a home equity loan, the interest is variable. Furthermore, a HELOC acts more like a credit card in that you don’t receive all the money at once (it’s a line of credit), whereas as with the HEL, you receive all the money in one lump sum.

Which is better, a refinanced mortgage or a home equity loan? Generally, if interest rates are lower than on your current home mortgage, a refinance will be better because you can take advantage of the lower interest rates. If current interest rates are more than on your current mortgage, a home equity loan will be better.

Related hubs:

Best Credit Card After Bankruptcy

Excessive Credit Card Debt

Eliminate Unsecured Credit Card Debt

Good luck in your legal credit card debt elimination!