Sounds like a potentially dangerous strategy to me. Regarding the $60K balance transfer, I have not seen a no-fee deal recently – they may be out there but what I am seeing is typically a 3% fee deal with no cap. On $60K, that’s $1800 in fees. The $4200 HELOC interest is tax deductable, so you are probably looking at about $3K out of pocket. So you are probably looking at saving a little over $1K for the year. Is this enough savings to offset the risk of a HELOC reduction to the point where you can’t draw to pay off the CC? If you get stuck in the CC your carrying costs will be huge – you are looking at monthly minimum payments in $1200-1800 range on the $60K – ouch. Compare that to a HELOC payment of what – about $400-450/month on $60K? Personally, I would pass on this strategy.
