I suppose that after a year you could just transfer the balance to another 0% teaser rate credit card.
Notice the amount involved.. and the word “credit cards’“. More than one was involved. What is the likelyhood of being able to rollover the balance into new cards? Each card taken out can affect the FICO score, making it less likely that he can get new cards.. or open a new HELOC. At $45000, there are probably at least 2 if not 3 different major credit cards used.
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC
That is assuming that the HELOC will not be closed by the bank. Many people are finding that they can no longer draw on their HELOC because of debt to equity ratios on their property with the price of housing dropping. This method works in a stable or rising house price environment.
