homeowners who are saddled with debt that carries high interest rates should consider a debt consolidation loan that will help them reduce their monthly payments and increase their credit scores. The current high interest rate debt is not a good plan to achieve financial security, and if the equity in the house is enough to pay off or consolidate debt, this is a smart move.
Using equity line of credit is a good way to pay off debt. Interest rates on equity lines of credit can be much lower than what credit cards carry. Someone who has a map on which they are paying more than 15% of you should think about how strong home equity loan. How credit card interest is not tax deductible, it makes sense to pay off. Home equity loan interest is tax deductible, so that not only the home advantage of this tax break, they are also paying less per month for their total debt.
talk with the lender about the repayment of debt using a debt consolidation loan is a financially sound strategy. They will require an assessment on your home to establish your home equity line of credit. It May not be enough to pay off all credit card debt without losing credit cards. Once a loan is funded, the homeowner must make monthly payments to the lender to return a line of credit, but it is a significant improvement compared to paying high interest rate credit card over a period of many years.
