The Best Way for Homeowners to Consolidate Debt
Your home is an investment and the returns come in a number of ways. One of those is dealing with financial challenges like personal debt.
If you've been struggling with debt, there's a not-so-secret weapon exclusive to homeowners. You can consolidate and get relief now with a home equity line of credit, also known as a HELOC.
If you've been in your home for years, you can unlock some serious value in its equity. A home equity line of credit can be applied to anything you'd like, including debt. There are several advantages to using a HELOC to consolidate.
Get a Lower Interest Rate
You can easily cut your interest rate from the double digits when you switch from plastic, which currently averages around a 16% APR, to a home equity line of credit for as little as 3%. You can even undercut the personal loan rate of between 5 and 8% with a HELOC. There's a good chance you can save a few percentage points on medical or student loan debt as well.
Make One Payment
One of the best features of debt consolidation is the simplicity. Instead of paying all those bills, you'll now have one. Sifting through stacks of statements can be overwhelming, so this saves a little sanity too.
Only Pay for What You Use
A HELOC may be the smartest way to use your home's equity. Unlike a home equity loan, or second mortgage, that gives you one lump sum, you only repay what you use on a HELOC. It's the limit that's based on your home's value, but what you spend is up to you.
A HELOC comes with many advantages, but one of the best may be debt consolidation. Put your home's equity to work for you with a HELOC, which is now available with low interest rates at Visions. See the latest APRs here, then get ready to make your financial life a little easier.
Looking for more guidance on matters of debt? Connect with one of our Debt Experts for free and discuss your financial goals.