The prospect of increasing interest rates has made me think of ways to reduce my interest bill. Do people think it's a worthwhile exercise to use a LOC (7.7%) to pay off my margin loan (9%)? My current ML has $47k drawn down @ 9% and my LOC has $177k drawn down @ 7.7% ($240k limit). It seems a no brainer that i can save 1.3% on my margin loan of $47k by using funds from the LOC to pay off my ML. I've just done the sums and 1.3% of $47k = $611. Ok, it's not a huge annual saving but i guess it's something plus i have consolidated all my debt. Is there anything i've missed or is this pretty obvious to others?