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Finance > Insurance > Home InsuranceConsolidate Credit Card Debt - Eliminate Debt With A Home Equity Loan
Posted by nick_niesen in Finance on October 29th Cory Spangenberg Womens Jersey , 2010


According to national surveys, the average household carries a credit card balance of approximately $8,000. Because of high finance fees, many people find that it is difficult to reduce their consumer debts. While bankruptcy is a tempting option, it is important to explore other alternatives for eliminating debts.


Benefits of a Debt Consolidation Loan


One approach for eliminating or reducing debts involves acquiring a debt consolidation loan. Although debt consolidation loans will not miraculously eliminate your debts Wil Myers Womens Jersey , these loans make is possible to reduce your debts faster.


Credit cards have high finance fees. Hence, it is difficult to pay down balances. In most cases, the minimum payment barely covers the finance charges. This makes it difficult to reduce the credit card balance. If you obtain a debt consolidation loan, all your credit balances are lumped into one loan. Furthermore, debt consolidation loans have reasonable interest rates. This enables you to become debt free within a few years.


Using a Home Equity Loan to Reduce Debts


There are various ways to obtain a debt consolidation loan. Individuals with good credit may qualify for a personal debt consolidation loan. Moreover Rollie Fingers Womens Jersey , if you own a home, it may be possible to get approved for a home equity loan. Home equity loans are ideal because the rates are low and the terms fixed. Usually, homeowners are able to repay the money in five to seven years 聳 sometimes less.


With a home equity loan, your equity works as the collateral. If your home聮s equity is $10,000 Dave Winfield Womens Jersey , it may be possible to obtain a loan up to this amount. The funds can be used for anything. For the most part, homeowners use home equity loans to payoff credit card debts. Other uses for a home equity loan include home improvement, college expenses, etc.


Disadvantage of a Home Equity Loan


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