Consolidate with a HELOC
A home equity line of credit HELOC is a line of credit that uses the equity in your home to secure the loan. Since the lender has security – if you don’t pay, they’ll take the house and sell it to get their money back – they’re not as worried about default, and so they offer a lower interest rate. A HELOC can be a good idea provided you are doing it to lower your costs and you are actively working to pay off the debt. Lots of people think that the equity in their homes is a great way to consolidate, and then they run right out and charge up a storm. That’s bad. Ultimately, the goal with any financing is to PAY IT OFF… not find more things to buy. If you have the right intention, then the HELOC is a good tool to use.