I would consolidate your cc balances with high rates into HELOC if you have open lines since this will bring your interest expense down substantially. With 0% or teaser rate cards, I would just pay minimums and on the day promo rates end, transfer the balance to the HELOC. With all the money you have set aside to pay credit card, pay HELOC.
HELOCs have variable rates which are mostly tied to prime rate and prime rate is at historic low of 3.25%. However, when the rates start going up, which can happen over the next year or two, rates on your HELOC will move up very quickly and your monthly payments can quickly double or more. Also, HELOC payments will be interest only for initial period (usually 10 years) and after that, payments will become similar to mortgage payment and you will need to pay principal as well. From quick calculation, you are paying 4% interest on your equity line or prime + 0.75%. Prime can easily move up to 8-9% range and if prime moves to 8%, your monthly payment will shoot up to $1,808. I would try to see where you can trim and cut expenses pay down HELOC ASAP.
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