Should I Use A Home Equity Loan To Pay Off Debt?

Posted by Rebecca Prince on July 5, 2018

Young woman posed like she is thinking

America celebrated its 242nd birthday yesterday!  And while the fireworks and backyard BBQ’s have come and gone, we’re still thinking about freedom.

Financial freedom, that is.

If you’re like most Americans, you probably have credit card or student loan debt, and you’re looking for a way out.  No, we can’t erase your debt, but we can suggest a strategy you might not have considered – using a home equity loan!

Lower Rates

Take a long, hard look at your rates.  Credit cards are notorious for having crazy high interest rates, especially if they’re backed by a bank or department store.  Consolidating your high interest debt into a home equity loan can save you tons in the long run.  You’ll also enjoy a fixed rate, so your payments won’t fluctuate on a whim.

View our Home Equity rates.

Easier Payments

Using a home equity loan to consolidate your debt also means easier payments.  Why pay seven different bills when you can just pay one?    One payment, one due date, fewer opportunities to forget.

If you remain consistent, not only will you kiss those late fees goodbye – your credit score will improve too.  Simplifying your finances is always a good thing!

Change Your Spending Habits

A home equity loan can be a great tool to consolidate your debt.  But, let’s dig a little deeper for a moment.  If you’ve racked up lots of debt, your spending habits need to change.  If you continue to use your credit card, your finances will not improve.  And ultimately, you could put your home in jeopardy.

Here at DuGood, we have several resources to help you save and spend a little smarter:

How DuGood Can Help

Think a home equity loan is the right solution for you?  For a limited time, we’re giving $250 cash back.  Be sure to check out our home equity page for more details.

Learn more.

Topics: Budgeting & Saving, Home