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The big exception: interest in the service of residence-based debt.Today, with a home-equity loan, homeowners can borrow up to 0,000 and still deduct all of the interest when they file their tax returns (assuming they make itemized deductions).The loan is based on the difference between the homeowner's equity and the home's current market value.

Options for smaller debt loads that don’t put your home at risk include: 0% balance transfer card: For people with good or excellent credit, issuers offer balance transfer credit cards with introductory no-interest periods from six months to two years.

Consider these pros and cons: Pros A homeowner with good credit is likely to have better options that don’t risk the house.

A homeowner with shaky finances shouldn’t move unsecured debt that can be erased in bankruptcy to secured debt that can’t.

All examples are hypothetical and are for illustrative purposes.

We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.