Credit Card Payoff via HELOC
Moving credit card debt to a HELOC trades a high unsecured rate for a lower secured one. That can save real money — but it converts debt you could walk away from into debt backed by your house.
This tool compares three paths on the same balances: paying the cards down directly with your surplus, transferring them to a HELOC and repaying that, and running a velocity banking cycle on top.
Two questions decide whether the transfer is worth it. Does the rate difference actually save more than the closing costs? And will the surplus that pays the HELOC down really materialise every month? If the answer to either is no, the transfer moves risk onto your home without buying much.
A HELOC is secured against your home. Credit card debt is not. Converting one to the other changes what is at stake if you cannot pay. This calculator models interest only — it cannot price that risk for you.
Pay off credit cards without the guesswork.
Same monthly surplus, three strategies. See what the lower rate does on its own — and what the velocity-banking mechanism actually adds on top.
Credit card debt
Your HELOC
Monthly cash flow