Transform nondeductible interest on personal credit card debt into a deduction.

If you’re a homeowner whose home has appreciated, consider obtaining a home equity loan (a second mortgage or a line of credit) that can be used to pay down or pay off credit card debt. The interest on the home equity loan is deductible as long as this borrowing doesn’t exceed $100,000 and you itemize deductions. But don’t view this as an opportunity to pile up credit card debt all over again—you’ll be in the same financial pickle, but without this home equity loan escape hatch (until the first loan has been paid down). Caution: Borrowing against your home means putting it at risk if you fail to keep up with timely repayments.