That can lead to a domino effect where you miss payments, your interest rates get raised, and then you can’t stay above water.
A consolidation loan can sometimes lower your monthly payment, and that can give you enough breathing room to get back on track.
One consolidation option available to homeowners is a home equity line of credit.
But what is a HELOC, and is it smart to use one to deal with your credit card debt?
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The University of Illinois has listed out the advantages and disadvantages of home equity loans. One benefit of taking out either a fixed rate home equity loan or HELOC on your property is that the interest on debt you pay off, such as credit cards is now usually tax deductible.
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You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Dealing with credit card debt can be seriously stressful.