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Should I Consolidate Credit Card Debt Using A Home Equity Loan?

Every situation is different but using equity that you’ve accumulated in your home as it has appreciated in value over your mortgage balance is probably the simplest and most attractive way to consolidate credit card debt.

You may refinance your home loan to consolidate credit card debt which will cause your mortage balance to go up but you will be able to pay off those debts with the high interest rates and fees in exchange for a home loan which always has lower interest rates than credit cards. Look up home refinance rates in your area and get quotes from several different lenders. With interest rates as low as they are these days, it sure will be nice to pay off your 18% credit card rates and replace them with a 6% mortgage rate before rates go higher which I believe is likely at this decade ends.

However, be sure to look at more than just the interest rates since refinancing also can mean closing costs and other fees you may have to pay which can add up to thousands of dollars out of pocket.

If you decide to preserve your home equity or you don’t have a home so you are unable to get a loan, you can consolidate credit card debt with lower rates using a highly regarded debt management company.