MELBOURNE, Australia — Police charged a third suspect on Friday with an arson attack on a Melbourne synagogue that was allegedly directed by Iran.
The 20-year-old man was one of three masked offenders who broke into the Adass Israel Synagogue, doused the interior with flammable liquid then set it alight in the early hours of Dec. 6, 2024, a police statement alleged.
The fire caused extensive damage to the synagogue and a worshipper sustained minor injuries.
The Victorian Joint Counter Terrorism Team, which brings together federal and state police with a spy agency, charged the man, who has not been named, with offenses including arson.
He was charged in a Melbourne jail where he was already being held in custody on unrelated offenses. Police declined to elaborate on those offenses.
His co-accused Giovanni Laulu, 21, was arrested in July last year and another suspect, Younes Ali Younes, 20, was arrested a month later.
Prime Minister Anthony Albanese last year accused Iran’s Revolutionary Guard of directing the synagogue fire and an arson attack two months earlier at a Sydney kosher eatery, Lewis’ Continental Kitchen.
Mike Burgess, director-general of the Australian Security Intelligence Organisation, the nation’s main domestic spy agency, said the Revolutionary Guard used a “complex web of proxies to hide its involvement” in both antisemitic attacks.
Iran’s ambassador to Australia and another three Iranian diplomats were expelled. Tehran has denied Australia’s allegations.
Australian Federal Police Assistant Commissioner Peter Crozier told reporters on Friday that investigators were working with international partners in the continuing investigation.
Police were also investigating whether the three alleged arsonists knew who ordered the attack.
“They may not actually be aware of the people who are directing or the principals of these investigations. That remains a key line of inquiry for us,” Crozier said.
Victoria Police Acting Assistant Commissioner Paul O’Halloran said police had informed the local Jewish community of the third arrest before the news was made public.
“Our heart goes out to them. Again, this brings back this terrible incident,” O’Halloran said.
“People deserve the right to feel safe and be safe in their community and particularly at their place of worship. Today’s charges are a strong testament to this,” he added.
The latest suspect will make his first court appearance on the new charges next week.
The Australian government has established a public inquiry to investigate a rise in antisemitism across the country, including the killing of 15 people when two gunmen opened fire on a Sydney Hanukkah celebration in December.
If your AC is older or breaking down more than you’re used to, waiting to deal with it won’t save you more money — in fact, it will make it worse.
AC repairs and replacements are already expensive, but several factors can make the cost even higher over the next few years. Between installation and ductwork issues, new refrigerant rules and hard-to-source parts, HVAC quotes feel a lot steeper than expected.
According to ARS, the refrigerant transition that began in 2025 is expected to push repair and replacement costs on older R-410A systems higher over the next several years as supply tightens.
That does not mean every homeowner needs to panic-replace their AC right now. But if your system is already older, inefficient or constantly needing repairs, the math may start changing sooner than you think.
Here’s why your AC may be about to get more expensive, and what to do before you’re stuck making a rushed decision.
The refrigerant transition could raise costs
As mentioned above, older systems may get more expensive to repair as supply tightens.
That matters because refrigerant is not just a random add-on. If your system has a leak, needs a major repair or requires refrigerant-related service, the cost can be dependent on what refrigerant the system uses and how easy it is to source.
If your AC is new and working well, it’s probably not an issue. But if your system is already aging, leaking, noisy or failing to cool properly, the refrigerant transition is one more reason not to ignore it.
visoot – stock.adobe.com
Older systems may become harder to justify repairing
Sometimes repairing an older AC unit just doesn’t make sense anymore.
ARS recommends a general rule for homeowners: If a repair quote is more than half the cost of a new system and the unit is over 10 years old, replacement usually makes more financial sense over the life of the system.
Joey Dooley, a general manager at ARS in Texas, says age alone is not the only factor.
“In some cases, an eight- or nine-year-old system makes sense to replace,” he says. “In other cases, you may have a system that’s 15 years old that still makes sense to keep. We really want to do that analysis and let the homeowner know what the true cost of ownership has been so they can make a decision.”
If repairs get more frequent, it might be time to consider replacing your HVAC.
Replacement costs are already high
Even before future cost increases, AC replacement is already a major investment.
According to ARS, a complete residential HVAC system replacement typically ranges from about $12,000 to $16,000, depending on system type, home size and installation requirements. ARS notes that simpler furnace-only replacements run lower, while premium or high-efficiency systems and complex installs run higher.
These numbers are worth paying attention to before the system completely fails. If you wait until your AC breaks during a heat wave, you may not have time to compare quotes or properly plan the project.
Quotes can vary by thousands
All contractors can have varying quotes.
According to ARS, two HVAC quotes for the same home can differ by thousands of dollars, and it’s typically not because one contractor is overcharging. ARS points to equipment tier, efficiency rating, install complexity, and whether work like ductwork or electrical upgrades is included.
The AC is only part of the cost. Ductwork can drive up the price if it’s leaking or not installed properly, which happens more often than you think.
“A lot of the real problems come from ductwork,” says Dooley. “If the ducts are installed improperly, if there are restrictions, if things are sealed badly, then you’re not getting the efficiency you paid for. For example, we can change to higher-efficiency equipment, but if the airflow and duct system aren’t right, you’re not going to get that full efficiency.”
According to ARS service data, ductwork repair or replacement typically runs between about $2,800 and $4,000 per job, depending on the extent of work and home layout.
A bigger AC is not always the answer
Sometimes, homeowners will choose a bigger, more expensive AC because they think it will cool their space faster. But bigger is not always better.
“First of all, it needs to be sized properly,” says Gregory Milich, an HVAC expert and college instructor with 43 years of experience. “You can’t just take a three-ton system out and put a four-ton system in because the customer says, ‘I just want more air conditioning.’ It does not work that way.”
That’s why a proper evaluation matters before you get an AC installed. Josh Conder, division operations manager for ARS Central Division, says his team does a full energy analysis and heat-load calculation to determine what works best for each home.
The last thing you want to do is pay for the wrong AC.
LIGHTFIELD STUDIOS – stock.adobe
Installation quality can make or break the investment
A new AC is expensive, but the equipment itself is only part of the equation.
“An HVAC system is not complete until it’s installed correctly,” says Scott Urquhart, an HVAC sales and customer experience expert. “Whether it’s the greatest equipment with the greatest warranty in the world, or it’s the cheapest equipment you’ve ever found or heard of, you have to install it correctly. And if you don’t, you’re going to have problems.”
Dooley says the same thing applies to system performance.
“I tell people all the time that the equipment can be great, but if the installation is bad, the performance will be bad,” he says.
Newer HVAC systems are generally more expensive, but they’re built to last longer and come with smarter tech.
“Now you’ve got systems with much more precise capacity control,” Dooley says. “That means if the house needs less cooling, the system can operate at a lower speed, use less electricity and still keep people comfortable.”
“There are even systems now that can help tell you if a filter is actually dirty versus replacing it just because it’s ‘time,’” he adds. “If you’re buying expensive filters, replacing them when you don’t need to is unnecessary.”
Those features may add to the upfront cost, but they can help with comfort, diagnostics and efficiency over time.
Kwangmoozaa – stock.adobe.com
What to check before costs climb
Before you assume you need a full replacement, make sure the problem is properly diagnosed.
What to check
Why it matters
System age
Older systems may become harder to justify repairing
Refrigerant type
Older R-410A systems may become more expensive to repair as supply tightens
Repair history
Frequent repairs can raise the true cost of ownership
Ductwork
Leaky or restricted ducts can reduce efficiency
System size
An oversized or undersized unit can cause comfort problems
Installation quality
Bad installation can hurt performance even with good equipment
Humidity control
Your AC should dehumidify, not just cool
Warranty coverage
Coverage can affect whether repair or replacement makes sense
Maintenance history
Missed maintenance can lead to breakdowns and warranty issues
What to ask your HVAC contractor
If you are worried about rising AC costs, ask direct questions before spending money.
Ask your HVAC contractor:
What refrigerant does your current system use
Whether the refrigerant transition affects future repair costs
Whether a repair or replacement makes more financial sense
Is the system is the correct size for your home
Was a heat-load calculation was performed
Whether the ducts were inspected, sealed or replaced
What, if any, electrical work is included
What warranties or guarantees apply
Whether there is a money-back or comfort guarantee
What maintenance is required to protect the warranty
The goal is to understand the long-term cost, not just the immediate quote.
Our verdict: How to avoid a surprise HVAC bill
The best way to avoid a future surprise bill is to stop waiting for the system to fail — that’s when it becomes expensive. That’s where maintenance comes into play.
“The importance of maintenance may change a little depending on where you are in the U.S., but biannual maintenance is the baseline,” he says. “Almost every manufacturer recommends it, and I can tell you that a lot of them also effectively require maintenance if you want to protect your warranty.”
Regular maintenance can help catch problems earlier, protect warranty coverage and give you more time to plan if a replacement is coming.
FAQ
Why is AC repair getting more expensive?
AC repair can get more expensive because of refrigerant changes, older system parts, labor and whether additional work like ductwork or electrical upgrades is needed.
What is the 2025 refrigerant transition?
According to ARS, the refrigerant transition that began in 2025 is expected to increase repair and replacement costs on older R-410A systems in the next few years as supply tightens.
Should I replace my R-410A system now?
Not necessarily. If your system is newer and working well, you may not need to replace it. But if it is older, leaking, breaking down often or expensive to repair, the refrigerant transition may change the repair versus replace calculation.
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What’s worse than spreading a disease? Not even realizing when you’re doing it.
Unfortunately, it happens more often than most people think because of simple, everyday behaviors that may seem harmless.
Dr. Bruce Hirsch, MD, an attending physician of infectious diseases at Northwell Health, teveals the super common habits that make him squirm because of their likelihood to spread pathogens.
And while they’re a bad move for anyone, he warns that they’re especially risky for people who are more vulnerable to illness, like those with weakened immune systems and delicate GI tracts.
You may be spreading bacteria without knowing it, but a few small changes can make a big difference. Malik/peopleimages.com – stock.adobe.com
1. Not washing hands properly before handling food
Washing one’s hands might not come as a surprise, but it’s not just about getting rid of dirt.
The bigger concern is the bacteria you may be carrying without even knowing it. Hirsch explained that while many of those germs don’t make you sick, they can be harmful to someone else.
“Often, a lot of us are colonized with bacteria that we’re getting along with fine but can cause illness in other people,” he told The Post. “If a person is colonized with potentially dangerous bacteria, then that becomes a real issue. Sometimes, it’s not just the bacteria, it’s what the bacteria are doing.”
The fix is simple: Wash your hands thoroughly with soap and running water, creating friction by rubbing them together for at least 10 seconds before rinsing.
And don’t stop there. Hirsch said it’s important to dry your hands with a towel or hand dryer rather than just shaking off the water.
2. Improper sneezing technique
Everybody sneezes. The problem is where those sneezes land.
Many people instinctively sneeze into their hands, which can quickly spread germs to everything they touch afterwards. But your elbow is actually the safest target, Hirsch said.
“You’re supposed to put all the sneeze right in there so that it impacts a spot that never will touch anybody else or anything around you,” he explained.
Dr. Bruce Hirsch, MD, advises people to focus on basic infection control habits, including washing hands thoroughly. Northwell Health
He advises achooing right inside the bend of the elbow, pulling up your arm and turning away from anyone nearby.
“That way, you’re not putting all this stuff on your hands, which manipulates the area around you,” said Hirsch.
3. Overusing alcohol sanitizer
You can be too clean for your own good.
While hand sanitizer has its place, Hirsch says there are some people who “bathe themselves or their desks in alcohol sanitizer,” an extreme that does more harm than good.
“In medical literature, there’s this concept called the hygiene hypothesis,” Hirsch explained. “[It] states that over keeping the environment super clean has been associated with an increased frequency of allergic conditions such as peanut allergies in kids.”
His views align with a body of research suggesting that exposure to the natural world can benefit both the immune system and the gut microbiome.
“We did not evolve in the presence of alcohol hand- cleansing gel,” he said. “We became what we are in response to an environment that often contained bacteria and germs, and we persevered as a species and evolved as a species anyway.”
You might want to rethink dousing your hands in sanitizer. Milan – stock.adobe.com
4. Shaking hands in a hospital
In most settings, refusing a handshake might come across as rude. But in a hospital, it could be the smarter, safer move.
Hirsch said he values connecting with patients and their loved ones, but a handshake can be especially risky. Hospitals, in particular, are filled with people battling different illnesses and taking different antibiotics, creating a unique environment for germs to run rampant.
“These patients pose a higher risk than seeing people in different types of social settings. In hospitals, it makes sense to avoid unnecessary casual contact,” explained Hirsch. “Let’s tap elbows instead.”
He expressed less concern about by the spread of “the regular poop bugs” in fecal mater than pathogens, such as MRSA, or methicillin-resistant staphylococcus aureus, a prevalent “peculiar bug” he considers one of the biggest offender.
5. People wearing a mask in their chin — not their mouth and nose
A mask can’t do its job if it’s not covering the parts of your face it’s designed to protect.
That may sound obvious, but Hirsch says he still sees plenty of people wearing masks under their noses or dangling from their chins, especially in healthcare settings where respiratory illnesses like the flu and COVID are a concern.
“It’s a very peculiar kind of performative gesture, wearing a mask on your chin or below the nose so that you’re able to breathe out in the atmosphere,” he argued.
“In this case, the mask is not doing any good. And yet, you’re wearing it on your face anyway.”
The Met Office has issued an amber Extreme Heat warning for parts of southern and eastern England and south Wales.
The warning is valid for Monday and Tuesday and warns of temperatures peaking at 35C (95F).
The nights will also be hot, remaining above 20C in some locations.
It brings the risk of impacts to health, especially for vulnerable people, and the danger of sunburn and heat exhaustion.
Some disruption and travel delays are also likely.
This Met Office warning is separate from the amber and yellow Heat Health Alerts that had already been issued by the UK Health Security Agency (UKHSA).
Those alerts, valid for regions of southern and eastern England until Tuesday, warn of significant impacts to health and social care services – with a likely increase in deaths among elderly and vulnerable people.
In contrast, this Met Office warning suggests that the heat will have impacts on the general population.
The holiday traces to victorious Union Gen. Gordon Granger’s June 19, 1865, order putting the Emancipation Proclamation into full legal effect across Texas and freeing all the state’s remaining slaves. It has since spread, culminating in federal recognition in 2021.
But what, as a holiday for all Americans, should we make of it?
Let us not treat black history and black life as somehow unapproachably apart from the larger history and life of this country.
As the great sociologist and civil-rights warrior W.E.B. Du Bois said in 1905:
We will not be satisfied to take one jot or tittle less than our full manhood rights. We claim for ourselves every single right that belongs to a freeborn American, political, civil and social; and until we get these rights we will never cease to protest and assail the ears of America. The battle we wage is not for ourselves alone but for all true Americans.
Precisely. The black quest for freedom and dignity is inextricably linked to the larger ideas that breathed life into this nation, reminding us all that liberty and dignity are not to be taken for granted, but to be continually fought for and defended.
With long and bloody struggle, the nation ended slavery; with a much longer struggle, black Americans won long-denied legal rights.
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Though black Americans still face obstacles, the new separatism — in which our different races, not our commonalities, will define us for good and all — will not advance the battle Du Bois waged.
As we fight that battle onward, we stand on the shoulders of Du Bois and also Frederick Douglass, Harriet Tubman, Frances Harper, Booker T. Washington and countless others.
Yes, we: It’s our battle, no matter what the prophets of division argue.
And we should be as proud to take it up as we are awed by the weight of suffering it carries.
As Prince Harry reportedly prepares to bring his family back to his homeland, in part to see his father, one big question swirls: Will Meghan Markle meet up with the royals she has publicly scorned?
Royal experts told Page Six that ever “diplomatic” King Charles would be willing to see Meghan Markle and would never shun her.
However, any meet-up will certainly be kept under wraps, with no photographers.
As we reported, Prince Harry is getting his wish of bringing Markle and their children, Prince Archie and Princess Lilibet, back to the UK next month for the first time in four years.
Prince Harry will finally bring his wife Meghan Markle and their children, Prince Archie and Princess Lilibet, to the UK for the first time in four years. meghan/Instagram
The Sussexes are traveling from California for a week of “Year to Go” events in anticipation of the 2027 Invictus Games in Birmingham. Their security is believed to have been upgraded after Harry’s fierce row with the British government over his bid to have armed police protect him in the UK.
Sources on both sides say there is no doubt Charles, 77, is eager to spend time with his grandchildren, having only seen Archie, 7, in person a handful of times and Lilibet, 5, just once.
“I am sure he will see the children,” said Hugo Vickers, royal biographer and friend of the family. “The king has always left the door wide open, and he did see Harry last September.
“It’s a good idea that Harry should reconcile privately with his father, for both their sakes. The king made it clear that he didn’t want his last years to be miserable, and Harry is burdened with enough trauma that, if Charles died without them making peace, that would just cause him even more problems,” Vickers added.
Charles, who walked Markle down the aisle for her marriage to Prince Harry, would not shun her now, said royal writer Hugo Vickers. Getty Images
“This is a good thing for both sides.”
Charles has been open about his cancer battle, prompting Harry, who believed his father could override the government on the security battle, to tell the BBC in May 2025, “I would love reconciliation with my family. Life is precious. I don’t know how much longer my father has, he won’t speak to me because of this security stuff. It would be nice to reconcile.”
Charles has a close relationship with Prince William and Kate Middleton’s children, Prince George, 12, Princess Charlotte, 11, and Prince Louis, 8, as evidenced when they joined him on the balcony at Buckingham Palace this past weekend for the Trooping the Colour ceremony.
Princess Lilibet was born in California and has only been to the UK once, when she was a baby. Meghan, Duchess of Sussex / Instagram
Although Markle, 44, has railed against the royal family and claimed she suffered abuse and racism while living within palace walls, going as far as to detail how she suffered suicidal thoughts, Vickers said Charles is eternally “diplomatic.”
Despite the drama of the past few years, Vickers said, “It would only make matters worse if the king refused to see her.”
We’ve learned that Charles still plans to make his annual pilgrimage to Edinburgh, Scotland, for a tradition known as Holyrood Week, which traditionally takes place every year from late June to early July.
Markle and Harry took their kids to Disneyland last month. Meghan/ Instagram
The king stays at the Palace of Holyroodhouse, the monarch’s official Scottish residence — and never changes his schedule as “he’s a busy man,” said Vickers.
But the timing means he should be available to meet Harry and his family, as the Invictus event is slated for July 10-17.
Another palace source, however, fears that Charles will be dragged along into the Sussex spotlight and the chaos that follows them, saying: “Harry and Meghan will frame it as the royal family need them, and Charles needs them.”
Harry and William, seen alongside Meghan Markle and King Charles at the 2019 Commonwealth Day Service in London, have not spoken in years. POOL/AFP via Getty Images
The last time the Sussexes were all together in the UK was for the late Queen Elizabeth II’s Platinum Jubilee in July 2022, just two months before she died. Harry and Markle brought baby Lilibet, who was given the queen’s childhood nickname, to meet her great-grandmother at Windsor Castle.
The recent spike in the cost of living has forced many people to resort to credit cards to keep their family budgets from bursting.
“The majority of people struggling with credit card debt aren’t doing so because they’re irresponsible,” Austin Kilgore, with the Achieve Center for Consumer Insights, tells the New York Post. “They are struggling to deal with essential expenses.”
On the other hand, Cotality, a property information and analytics provider, recently released a report showing that “the average borrower now has about $295,000 in accumulated home equity” at the end of 2025. Though many Americans are feeling squeezed by a dramatic rise in prices over the last six months, they are sitting on a lot of home equity that can be used to zero out their bad, expensive credit card debt.
SaLLy Studio AI – stock.adobe.com
The difference between “good” debt and “bad” debt
Credit card debt is expensive relative to other kinds of debt because the average interest rate on a credit card balance has reached an all-time high.
According to Lendingtree, the average APR offered with a new credit card is currently 23.79%, up from 23.75% in April.
That means if you have $5,000 in debt on a card at that rate, you will owe $98.75 in interest alone every month. Making the minimum payments, it will take you 200 months — almost 17 years — to pay off that debt, assuming you don’t charge anything else to that credit card in the meantime.
Credit card debt is also “bad debt” because what you buy with it usually doesn’t appreciate in value (for example, a dinner out).
Good debt, on the other hand, leaves you with a valuable and hopefully appreciating asset. For example, your mortgage is debt that you take on to acquire an asset that has historically gained value: your house.
Turning bad debt into good debt can be a strategic financial move that involves leveraging your home’s equity to consolidate high-interest, unsecured credit card debt into a lower-interest, secured loan.
Because credit card interest rates are often double or triple the rates on home equity products, this conversion can drastically reduce the total interest you pay over the life of your debt. By replacing a high-cost revolving balance with a fixed, amortizing payment, you not only lower your monthly interest burden but also create a structured, predictable path to total debt freedom, provided you have the self-discipline to avoid running up new credit card balances.
How home equity loans and home equity lines of credit (HELOCs) work
Home equity loans and lines of credit (HELOCs) both use the value of the equity in your home to finance a loan you can use to pay off high-interest credit cards and make improvements to your house.
A home equity loan functions as a second mortgage on your home, allowing homeowners to borrow against the accumulated equity while keeping their primary mortgage intact. You get the entire sum in a single, one-time payment.
Home equity loans are predictable due to a fixed interest rate that never changes. You can count on fixed monthly payments over a predetermined period, usually 10 to 15 years. Because the costs are fixed, budgeting is straightforward, and once homeowners have locked in their rate, they don’t have to worry about rates rising.
A HELOC (home equity line of credit) also allows homeowners to borrow against the equity in their home, but product features can vary significantly by provider.
Some HELOCs function as revolving lines of credit that allow borrowers to access funds as needed during a draw period. These products may allow borrowers to reaccess available credit as they repay the balance and may require interest-only payments for a period of time before principal repayment begins.
Other HELOCs provide funds upfront and follow a structured repayment schedule from the beginning, making them more similar to a traditional loan. Depending on the product, borrowers may receive a fixed interest rate with predictable monthly payments or a variable rate that can change over time.
Because funding methods, repayment schedules and interest rate structures vary, borrowers should carefully review the terms of any HELOC to understand how funds are disbursed, how monthly payments are calculated and how long repayment will take.
Vitalii Vodolazskyi – stock.adobe.com
The pros and cons of using a home equity loan or HELOC to pay off credit card debt
Using a home equity loan or HELOC to pay off expensive credit card debt has its advantages.
The interest on a home equity loan may be much less expensive than the interest on a credit card, depending on your credit score and the terms of your loan. Reporting from Bankrate shows that home equity loan rates range from 5.65% to 10.75%, and the average rate is between 8.12% and 8.25%.
This is what it looks like to pay off a $5,000 balance with a credit card versus paying off that same balance making minimum payments:
Debt Payoff Strategy
Interest Rate
Monthly Payment
Time to Pay Off
Total Interest Paid
Total Amount Paid
Credit Card (Minimums)
23.79%
Starts at $149 (decreases monthly)
~19.5 Years (234 months)
$8,804.09
$13,804.09
Home Equity Loan
8.75%
Fixed at $62.66
10 Years (120 months)
$2,519.61
$7,519.61
Total Savings
Saved 15.04%
Lower fixed burden
Saved 9.5 Years
Saved $6,284.48
Saved $6,284.48
In this example, you save $6,284.48 and 10 years by paying off your high-interest credit cards with a home equity loan.
Using a HELOC to pay off a credit card also has advantages, though the mechanics are different.
According to Kilgore, “While many HELOCs have variable interest rates, some companies, including Achieve, provide fixed-rate HELOCs. For borrowers, that can mean more predictable monthly payments and a clear repayment timeline, which may be especially valuable when consolidating high-interest debt.”
Both home equity loans and HELOCs can be used for debt consolidation, home improvement projects and other major expenses. The right option depends on a borrower’s financial goals, preferred loan features and overall financial situation.
“Many people use home equity products to consolidate higher-interest debt, while others may use them to finance home improvements or other significant expenses,” according to Kilgore.
“Before choosing a product, consumers should compare interest rates, repayment terms and monthly payment requirements to determine which option best aligns with their needs.”
Take a look at this HELOC vs. home equity loan comparison.
HELOC vs. home equity loan pros and cons
Financing Option
Pros
Cons
Home Equity Loan (Lump Sum)
• Fixed Rate: Payments never change, protecting you from interest rate hikes. • Structured Payoff: Clear end date forces you to eliminate the debt completely. • Lower Interest: Rates are significantly lower than standard credit cards.
• Inflexible Amount: You pay interest on the whole amount, even if you overborrow. • Higher Initial Payments: Principal repayment starts immediately on day one. • Risk of Re-building Debt: Accessing cash doesn’t stop temptation to use cards again.
HELOC (Line of Credit)
• Pay as You Go: Only borrow and pay interest on the exact debt amount needed. • Lower Initial Costs: Draw period often requires low, interest-only payments. • Reusable Fund: Credit line replenishes as you pay it down for future needs.
• Variable Rates: Payments can rise unexpectedly if market interest rates increase. • Payment Shock: Monthly bills jump sharply when the repayment period begins. • Overspending Risk: Having an open line of credit can lead to deeper debt cycles.
What to know before using a home equity loan or HELOC to pay off credit card debt
Using the equity in your home to pay off expensive, high-interest credit cards can save you money and time. But it’s important to understand the risks of this debt reduction strategy.
Because credit card debt is unsecured, it may be possible in emergency situations to negotiate with your creditors or discharge your debt in bankruptcy without losing your house. In fact, bankruptcy protection is designed to keep you from losing your house if your financial situation becomes dire.
Home equity loans and HELOCs are secured by your house, however, which means if you can’t afford to pay them back, the lender could foreclose on your home. Using your home’s equity to pay off high-interest credit cards is only a viable option if you have created a budget to deal with your cash flow problems.
True financial freedom begins the moment you confront your numbers with complete honesty. A solid, lasting debt payoff plan aligns your income and expenses into a balanced budget. This structure allows you to systematically pay off your debts, protect your savings and design a sustainable lifestyle.
However, swapping high-interest credit card debt for home equity requires absolute lifestyle discipline. Without it, you will likely fall into the devastating double debt trap. You take out a loan to pay off your credit cards, but then you slowly refill them with new expenses. Suddenly, you face the exact same credit card debt, layered right on top of a heavy new home equity payment.
Services offered by Achieve can help you decide if a home equity loan or HELOC is the right move to help you reduce your debt payments and stay in the black.
Andy Dean – stock.adobe.com
Frequently Asked Questions: Using Home Equity to Pay Off Debt
What is the difference between a home equity loan and a HELOC?
The main difference lies in how the products are structured and repaid. A home equity loan typically functions as a second mortgage, providing a lump sum upfront with a fixed interest rate and predictable monthly payments over a set repayment term. A HELOC (Home Equity Line of Credit) also allows homeowners to borrow against their home equity, but features can vary by provider. Some HELOCs function as revolving lines of credit that allow borrowers to access funds as needed, while others provide funds upfront and follow a structured repayment schedule. Interest rates may be fixed or variable depending on the product.
Is it a good idea to use home equity to pay off credit card debt?
It can be a highly strategic financial move if you have absolute lifestyle discipline. By converting high-interest, unsecured credit card debt (averaging around 23.79%) into a lower-interest, secured home equity product (averaging 8.12% to 8.25%), you can drastically reduce your monthly interest burden. For example, paying off a $5,000 balance with a home equity loan instead of making minimum credit card payments could save you over $6,200 and cut your payoff time by nearly a decade.
Is it a good idea to use home equity to pay off credit card debt?
It can be a highly strategic financial move if you have absolute lifestyle discipline. By converting high-interest, unsecured credit card debt (averaging around 23.79%) into a lower-interest, secured home equity product (averaging 8.12% to 8.25%), you can drastically reduce your monthly interest burden. For example, paying off a $5,000 balance with a home equity loan instead of making minimum credit card payments could save you over $6,200 and cut your payoff time by nearly a decade.
What are the risks of using home equity to pay off credit cards?
The most severe risk is the potential loss of your home. Credit card debt is unsecured, meaning it can sometimes be negotiated or discharged in bankruptcy without affecting your housing. Home equity loans and HELOCs are secured by your property; if you default, the bank can foreclose. Additionally, borrowers face the double debt trap: using equity to clear credit card balances, only to rack up new credit card debt while simultaneously carrying a heavy new home equity payment.
How does the repayment process for a HELOC work?
HELOC repayment structures vary by product and provider. Some HELOCs have a draw period followed by a repayment period, while others may provide funds upfront and follow a structured repayment schedule from the beginning. Interest rates can also vary, with some products featuring variable rates and others offering fixed rates. Before choosing a HELOC, borrowers should carefully review how funds are disbursed, how monthly payments are calculated and how long repayment will take.
Brooklyn-based financial journalist Will Kenton has over a decade of experience covering the intersection of money, economics and culture. Specializing in investing, personal finance and retirement planning, his work has appeared in Investopedia, AP News, Business Insider and TIME Stamped. While at Investopedia, Will was the creative force behind the Anxiety Index, a proprietary tool used to gauge investor sentiment. His expertise is rooted in behavioral economics — a field he explored as associate editor of the New School Economics Review — and he aims to help readers navigate the “predictable irrationality” that influences financial decisions. Will holds a BA from Ohio University, an MA in economics from The New School and a Ph.D. in English literature from NYU. Beyond his financial career, he is also an award-winning playwright featured in the Red Bull Theater’s annual festival.
