Let a Home Equity Loan Ease Your Credit Card DebtBy Debbie Wilson
Loan Page Columnist
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Credit card debt can be one of the worst types of debt because it has a high interest rate and no tax advantage. But a home equity loan can help ease the pain of credit card debt and provide a viable financial solution. In addition, a home equity loan can help you get back on track with other important goals, such as college funds, retirement plans, and investments.
Credit Card Loans vs. Home Equity LoansYes, it is true that a home equity loan involves mortgage payments, so it may seem like you're just replacing one loan with another. But, there are important factors to take into consideration. First of all, a home equity loan carries a much lower interest rate than typical credit card rates. Even more important, the interest on a home equity loan is usually tax deductible.
So while you'll still have to make monthly payments, you can secure a fixed-rate mortgage with a lower, constant fee. And this fixed payment can ease your mental and financial strains.
Extra Money, Extra SavingsThe right home equity loan will allow you to reduce your monthly credit card debt, while contributing to a retirement account or other financial security. Along with a lower interest rate comes the perfect opportunity to invest in your future--no more wasted money on interest charges and transferred balances.
So if you're ready to make a serious dent in your credit card debt, consider a home equity loan. It can help you with cost-cutting payments and brighten your financial future.
About the Author
Debbie Wilson owns and operates a lakeside resort. Debbie holds a B.A. in Business Management with a minor in Physical Education.
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