If you are burdened by credit card debt, a debt consolidation home equity loan can help to ease your burden.
It’s common knowledge that credit card debt has the highest interest rates around. The only way that you are paying more interest for money that you have borrowed is if you owe money on a payday loan, a title loan or to the mafia.
You home is literally on the line
By choosing a debt consolidation home equity loan, you’ll be paying one of the lowest interest rates available for consumer loans. This is because you have guaranteed that you will pay back this loan with your home. Home equity loans allow you to pay back the sum borrowed over a period of ten to fifteen years.
If you consolidate all of your credit card bills into one home equity loan payment, you will drop your payments by a substantial amount of money each month. With the lower interest rate, you will be able to pay back the money that was borrowed on credit cards in the less time than if you had continued to make the minimum monthly payments.
Pay off those expensive credit cards
If you are not having trouble making the minimum payments on the credit cards but want to have the balance paid to zero sooner, consider a home equity loan to help here also. By lowering the interest rate, you can continue to pay the same dollar amount and pay off the debt much sooner.
Once you have paid those credit cards to zero with the home equity loan, you may be tempted to use them again. You need to be careful, because if you max out the credit cards again, you may not have enough equity in your home to repeat the exercise.
Keep your credit cards going
What…
While you do not want to over extend the credit cards again, you will want to keep those cards open, as it will increase your credit rating. One way to keep cards open is to use them every two to three months for a small purchase that will be paid back in full at the end of the month. Just be sure that you will have the money to pay the bill in full when it is due.
Try to pay them up each month, within the interest free period, to avoid the horrendous interest rates. Rotate the card that you use so that all of the cards are used every two to three months to keep the accounts active.