Debt Consolidation Equity Loan
Have you recently thought about taking out a debt consolidation equity loan? If you own a home and have significant non-mortgage debt, this is an option you should seriously consider. Compared to other forms of debt consolidation a home equity loan for debt consolidation, sometimes called a debt consolidation equity loan, can offer several advantages.
Advantages of a Debt Consolidation Equity Loan
There are two primary advantages of using a choosing a debt consolidation equity loan over other forms of debt consolidation. First, home equity loans typically carry a much lower interest rate than credit cards and auto loans, the types of things that you will be consolidating. Second, in some cases, the debt consolidation equity loan interest may be tax deductible. Let’s explore these two advantages a bit more.
Debt Consolidation Equity Loans = Lower Interest Rates
Most credit cards these days will be charging from 9% to 21% interest on charges paid over time. Gone are the days of 2% rates as a result of threatening to leave. This is due in large part to the credit reform laws put in place to protect us consumers. Credit card companies now know credit is harder to come by and thus are much stricter with their policies. Also, auto loans, tend to be somewhere in the 4% to 12% range, depending on many factors. In some cases, your auto loan interest rate will be lower than any debt consolidation equity loan that you can get, however, if the rates are close, it might make sense to fold it in as it can lower your payment by adding to the term, and still provide a potential tax deduction (more on that in a bit). Current home equity loan rates are as low as 3% in some cases, while 3.75%-4.25% are very common. At those rates you could save hundreds of dollars a month and thousands a year on your debt payments. And that doesn’t include the potential money you could save by the second potential advantage.
Debt Consolidation Equity Loan Interest Deductions
In many cases, the interest paid on your debt consolidation equity loan may be tax deductible (check with your tax professional). I’m not a tax or legal professional so I can’t tell you for sure if this will be the case for you, but in many cases this interest can be deductable. If you are thinking of taking out a home equity loan to consolidate your debt, check with your tax professional to find out if you can save even more by gaining an additional tax deduction from the interest paid yearly. Combine this with the savings gained by consolidating your debt into a lower interest account, and you could save a massive amount of money.
Do Your Homework on Debt Consolidation Equity Loans and Take Action
At www.debtconsolidationfairy.com we have a ton of info on debt consolidation topics such as credit repair, debt consolidation, student loan debt consolidation, and online debt consolidation services. Please use this information to help yourself get out of debt and stay out of debt. Remember, read, plan, and most importantly, take action!