You're right, there is risk in CC term changes. That risk is probably higher for subprime consumers, though, and this doesn't appear to be the case here, given the stated rates. I'm speculating a bit here, would need confirmation from willow on credit rating, other assets, etc. Willow has been able to save $15k, another hint of a prime rate consumer.
All CC term changes I've seen personally, and heard people describe, allow an opt out, in which case current terms apply until the debt is paid off. Please correct me if I'm wrong. This would cap the rate at 12%. And willow has the car free and clear, providing flexibility for selling or refinancing. It probably makes sense to actually run the numbers assuming this worst case rate scenario. My hunch would be that my recommendation is mathematically slightly worse, but not a huge difference.
I think the HELOC is the much higher risk here.
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