Which of the following forms of consumer credit is the cheapest and offers tax shelters?
A)Overdraft protection lines
B)Home equity credit lines
C)Credit cards
D)Unsecured personal credit
E)The Wage Earner Plan

Question

Quizplus · Accepted Answer

Home equity credit lines are secured by the value of the borrower's home, making them less risky for the lender and offering lower interest rates. Additionally, the interest paid on home equity loans is often tax-deductible, making it the cheapest form of consumer credit with tax shelters.

Which of the Following Forms of Consumer Credit Is the Cheapest