This article was originally published on Bankrate.com.
A home equity loan allows you to convert a portion of the equity youve built in your home to cash. Its also an effective way to consolidate debt and eliminate high-interest credit card and loan balances sooner. Thats because the average interest rate on home equity loans is often lower than that of a credit card.
These loans arent without risk, though. Youll increase your debt load, and your home could be foreclosed if you fall behind on payments. Weigh all your options to decide if a home equity loan is best to consolidate your debt.
Should I use a home equity loan to consolidate debt?
Because home equity loans and home equity lines of credit (HELOCs) have relatively lower interest…
Read the full article at: https://finance.yahoo.com/news/home-equity-loan-debt-consolidation-163900000.html