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Home Equity Loan or Line of Credit
Home equity loans or lines of credit are often
advertised as a quick and easy way to get out of debt. By
leveraging your home equity, you can get money to pay off
your debt and perhaps get a tax break as well.
While this option can work for some debt-burdened
homeowners, borrowing against your house can backfire. Although
you may be reducing your credit card payments, you now have
a larger mortgage payment, for a much longer period of time.
Over the life of the loan with all the additional
interest, you will end up paying back your original debt many
times over. With these types of loans you are converting unsecured
debts into secured debts which ultimately leads to the biggest
risk for a homeowner.
If you run into trouble again and have difficulty
making the payments on the new loan, you could risk losing
your home to foreclosure! Should you feel that this is the
best way to handle your debt, we can go over different financing
options that you may qualify for. Contact
us now to learn more.
Balance
Transfers: Short term Fix?
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