Debt Consolidation with a
Home Equity Loan

A Home Equity Loan can be a great option for anyone striving toward being debt free.  The rates are very low compared to other types of loans and can save you a great deal in monthly fees.

Home Equity Loan - Debt Consolidation Center

Home equity loans or second mortgage loans are lump sum loans. A different loan option is a home equity line of credit. Second mortgage loans are repaid over a set amount of time, with a fixed interest rate and a regular monthly payment. Unlike a home equity line of credit, you cannot borrow further from the loan once it is issued. You can get a home equity loan on line to use it against credit card debt, since you know exactly how much is owed. If you take out a second mortgage loans for the exact amount of your debt, you won't run the risk of increasing your debt and causing future financial issues.

Consumers will often use the lump sum from home equity loan refinancing to pay back the total of their credit card debt. The rates on a home equity loan averages usually 5-10% below the average credit card interest rate. Thus, consumers are able to pay back their debt quicker and cheaper. This is the single most popular reason that these loans are taken out from a home equity loans company. Why not take advantage of this option today?

Will my debt be increased by getting ANOTHER LOAN?
Taking out a home equity loan will not increase your debt. You are simply moving your debt from a multitude of high-interest lenders to one low-interest lender. Using a home equity loan to pay off multiple credit cards will also simplify your debt repayments. Rather than paying a variety of credit card companies every month, you simply make one payment to the bank.

Other Advantages
The interest that you pay on a home equity loan is deductible on your primary residence. While you cannot deduct interest paid on a regular credit card bill, you can deduct the interest paid on a home equity loan. Thus, you’ll have the financial benefits of paying a lot less interest, plus the tax benefits of deducting the home equity interest payments.

Learn about a Home Equity Line of Credit