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3 Reasons to Consolidate Credit Card Debt with a Home Equity Loan

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If you need to consolidate credit card debt, then you may want to consider a home equity loan. There are some advantages to a home equity loan and it is a better option than a personal loan or balance transfer. A home equity loan allows you to immediately consolidate the debt and make it one affordable payment.

1. Low Interest Rates

Home loans carry low rates, usually much lower than a credit card. This is because there is collateral which is your home. A secured debt will give you a better rate than a personal loan or credit card. These low rates will save you money in the long run.

2. Longer Terms

A home loan is usually thirty years long. This can be a good or bad thing, but if you are looking to save money monthly and have lower payments, then a longer loan term will mean lower payments each month.

3. Taxes

The biggest advantage to a home equity loan is the tax write-off. Credit card debt is not tax deductible, but mortgage interest and points paid is. This allows you even greater savings every year.