Home Equity Line of Credit

This solution requires that you apply, and get approved, for a Home Equity Line of Credit (HELOC) which simply alters your debt burden and reduces your available assets. A HELOC enables you to consolidate your revolving debts on your own and, in all likelihood, reduce your overall interest rates, but it comes with many consequences as well.

This solution is a short-term fix that may put your home at risk since you will significantly utilize or entirely eliminate the equity you currently have in your property. It also will make it much more difficult for you to refinance your home since you may not have enough equity to meet lender requirements. Should you want to sell your home, you may have insufficient equity to pay real estate agent commissions and closing costs. This solution could significantly increase the total debt paid, and does not help you modify your spending behavior.

Remember, you will need the assistance of a mortgage or banking professional to obtain a HELOC and you will need sufficient equity in your home. You also will be responsible for expenses such as appraisal fees and closing costs to secure the loan. Our referral resources can help you with the HELOC process. Get in touch with one of our Certified Credit Counselors today to get started!