From: "joe.weinstein@gmail.com" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Use a home equity line to pay-ff cars
Date: Wed, 23 Feb 2005 04:08:04 CST
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The main warning in this circumstance is called the "institutionalizing
of debt",
in that you are transferring short-term debt to the possibility of
being long-term.
It is a slippery slope if you were to continue to tap higher-cost debt
that was
freed by this, like buying a new car before the old one's contribution
to your
home-debt was paid off.
   However, you seem to have the correct attitude that you should
absolutely
pay off this debt as soon as practical. With that in mind, you will
gain a lower
interest rate cost from an equity loan, and it may be tax advantaged
too.
The last thing you should check is the detail of your car loan. Car
loans
can be structured to pay all interest first, so the benefit of
prepayment may
be different than you expect.
Joe