Re: Taking our a Home Equity Loan to pay off debts

wrote:
> I've been reading this book titled, "Missed Fortune 101 : A
> Starter Kit to Becoming a Millionaire"

The title of the book raises flags for me.

> in the book he suggests
> taking out a home equity loan to pay off debts, or use the money to
> purchase a car.

While that may reduce the interest rate, it is generally not advised to
secure these debts with your home. Worst scenario, you could lose your
home.

> In doing so you can deduct the interest on the loan, an
> auto loan with a bank you cannot deduct the interest from your taxes.

People have this obsession with deductions. Would you rather have a
interest deductible 8% loan or a non-deductible 5% loan? I think a lot
of people would (incorrectly) take the deductible loan. What is your
auto loan interest rate? Compare it to the after-tax home equity rate.
If the after-tax home equity rate is far lower, then maybe consider it.
Otherwise, it's not worth risking your home!