What should I do with these rates?

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In the following scenario, what's the best thing to do to reduce the debt the fastest and keep interest costs and balance transfer fees to a minimum?

Home Equity Loan balance of $26,000 (limit is $27,900) rate is variable (between 8.25 and 8.75%). The interest I pay on this loan is deductible on my taxes I think?

Discover balance of $8,400 (limit is $11,000) rate is currently 0% but will go to 8% in a few months.

Visa balance of $6,000 (limit is $25,000) rate is currently 20%.

Thanks for your advice. 10 points to the most helpful!

What should I do with these rates?

The interest you pay from a Home Equity Line of Credit is deductible. Also, the rate on this kind of loan fluctuates, so be prepared to pay less or more depending on what the Fed does; i.e. lowers or raises the prime rate. As well, most HELC have an early pay-off penalty fee, but usually do not have a "balance transfer fee."

The introductory offer from the Discover card sounds nice, but if you have to transfer some kind of balance to it, you will have to pay a transaction fee, which could be anywhere from 3% to 5% of the amount transfered. Also, you want to make sure the rate stays at 8% and doesn't go up the following year. To reduce this debt, pay more than the minimum required payment. Can you not afford to pay $10 or $20 more per month? Make it $100 if you can.

The Visa rate sounds disgusting. I would never use that card. The best thing to reduce this debt is to transfer the balance to a better card if you can.

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What should I do with these rates?

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