Should I Use a HELOC to Lower My Debt Payments?
If the interest rates for your other debts are high, as is usually the case for credit card debt, you can take advantage of the generally-lower HELOC rates that are secured by your equity in your home. Taking out a HELOC to pay off these debts will lower the cost of your payments, and can be a useful way to save money. However, you should take into account that your HELOC is secured by your home, and if you fail to make payments on your HELOC, the lender could seize your home.
Thus, while it can be very helpful to use a HELOC to lower your debt payments, you should only do so responsibly, when you are confident that you can continue to afford your HELOC payments.
- What Is a Home Equity Line of Credit (HELOC)?
- How Much Does a HELOC Lower My Interest Rate?
- Should I Choose a HELOC or a Home Equity Loan?
- How Does a HELOC Work?
- What Are the Benefits of a HELOC?
- What Are the Drawbacks of a HELOC?
- What Are the Most Common Reasons to Use a HELOC?
- How Much Can You Borrow Using a HELOC?
- What Are the Requirements to Take Out a HELOC?
- How Is My HELOC Rate Calculated?