Home equity loans are home mortgages used for
home improvement or debt consolidation. Unlike your unsecured debt, such as credit cards,
a home equity loan has a low, fixed interest rate. A fixed interest rate
means that your interest rate will not change during the life of the loan.
So instead of credit card interest rates of 14% to 29.9%, you could be paying
6.31% average interest rate* on a home equity loan. Plus, the interest you
pay is tax deductable.
The difference
in payments & interest
paid on credit card debt vs. a home equity loan.
CreditGUARD of America certified credit counselors
will examine your debt problems and determine if a home equity loan would best fit your financial
situation. Before you can consider using a home equity loan for debt consolidation,
you must:
- Own Your Home
- Have more than $10,000 in Unsecured Debt
- Have sufficient Home Equity
If you don’t meet those basic qualifications,
our certified credit counselors can look at other ways of consolidating
debt for you.
It’s important to remember that a home equity loan
doesn’t erase your credit card debt. You’re only consolidating
those debts to a lower interest rate, so you should pay back your home equity
loan as soon as possible. While a person with good credit can get a home
equity loan for up to 125% more than the value of the home, you should only
borrow as much as you need. Otherwise you run the risk of creating an even
bigger debt than you can handle.
Because you’re using your home as collateral (to
guarantee the home equity loan), it’s important not to be late or default
on your loan. If you miss more than two loan payments, you run the risk of
losing your home. Before getting a home equity loan, speak to one of the
certified credit counselors at CreditGUARD of America to be certain this
is the best financial solution for you.
Contact us online or call
CreditGUARD of America at 1-800-500-6489. Certified credit
counselors are available Monday through Thursday 8:00 a.m. to 12:00 midnight;
Friday 8:00
a.m. to 11:30 p.m.; Saturday 10:00 a.m. to 6:00 p.m. Eastern Time. For online
service, 24/7, use the Credit Card Debt
Analyzer to
calculate your estimated interest and payment savings available, through
our debt management program.
*Interest rates calculated by Bankrate.com on 1/29/04
Contact
Us | Credit Counseling | Debt
Analyzer | Questions & Answers
Educational Resources | Credit
Management | Debt Collection | Money Management
Free Calculators | About
Us | Community Services | Corporate
Services | Associations
Testimonials | Media
Center | Privacy Statement | Account
Login | Site Map
counselor@creditguard.org
CreditGUARD of America • 791 Park of Commerce Blvd • Suite 500• Boca
Raton, Florida 33487
Copyright © 2007 CreditGUARD of America, Inc. All rights reserved.
| Privacy Statement |
Click our savings calculator.
