How can a home equity loan help when consolidating debts?
If you have balances on your credit cards, an auto or boat loan, or other personal loans, it usually makes sense to use your home equity loan to pay off these balances. Not only may the interest be tax deductible (consult a tax advisor), the interest rate on a home equity loan will generally be lower than that of most credit cards and other personal loans. Also the monthly payment is usually lower when you combine all your payments into one loan.
Related Questions
- Can consolidating debt through a new, refinanced mortgage, cash-out refinance, home equity loan or home equity line of credit (HELOC) help me cut my monthly expenses?
- Can the lender require me to pay off unsecured consumer debts with my home equity loan?
- How can a home equity loan help when consolidating debts?
