Home Equity
Consolidating Debt
If you are overextended with credit and living month-to-month, debt consolidation might make your payments more manageable. By using a home equity loan to pay off multiple credit accounts, you can take advantage of three valuable benefits:
- Simplicity. Instead of a steady stream of bills in the mail — each with a different payment amount and due-date — you receive a single statement each month.
- Lower payments. Because they are secured by your home, home loans generally carry lower rates than most other types of credit. That means you'll have lower monthly payments and a chance to put money into savings.
- Improving credit. Simplifying your debt situation and reducing your monthly obligations can make it easier to keep up with payments. A solid payment record on your home equity account is a great way to give your credit a boost.
