Debt consolidating home equity finance
Transferring your debt to one credit card, known as a credit card balance transfer, could help you save money on interest, and you’ll have to keep track of only one monthly payment.You’ll need a card with a limit high enough to accommodate your balances and an annual percentage rate (APR) low enough and for a sufficient time period to make consolidation worthwhile.Try adjusting the terms, loan types or rate until you find a debt consolidation plan that fits your goals and budget.Once you run the numbers, you’ll want to choose a method to consolidate your debt.The Loan to Value ratio (mortgage value divided by property value) should not exceed 80% (or 90% with mortgage default insurance).
A personal loan is an unsecured loan that, unlike a credit card, features equal monthly payments.
Loan amounts vary with credit score and history, but generally top out at ,000.
While banks and credit unions offer personal loans, subprime lenders are also very active in this market so it’s important to shop carefully and understand rates, terms and fees.
There are two types of home equity loans: a fixed-rate, lump-sum option and a home equity line of credit, or HELOC, which acts like a credit card.
Learn more about each option and which may be best for your situation.