Using A Home Equity Line of Credit (HELOC) for Debt Consolidation

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The pressure of mounting debt can cause many of us to feel like we are far from reaching our financial goals. But for homeowners, the growing equity in their property offers an opportunity to make debt consolidation not only possible but manageable.

When it comes to tackling debt, a home equity line of credit (HELOC) can offer a number of benefits that are less common in traditional loans. Here are some of the most notable ones…

Lower Interest Rates

One major reason to use a HELOC for debt consolidation is the ability to take advantage of more favorable rates. By tying your current debts with your home’s equity, the lower interest rates can offer you better monthly payment options, and potentially allow you to pay your debts off much sooner, as more funds are going towards the balance of your loan.

Affordable Monthly Payments

Another advantage of a HELOC is flexible monthly payments. As you consider debt consolidation, take a look at your current monthly payments, how does that fit into your current spending plan, and how could freeing up some funds each month help you towards your financial goals? By consolidating your debts into a HELOC you and your family can potentially free up the funds you need in your monthly budget, and our mortgage team is here to help you review the best option for you and your personal goal.

A Personalized Solution from Home Loan Specialists

With locations all around the area, Call Federal is proud to offer Richmonders the personalized experience they deserve. Questions about which debts you could consolidate? Not sure how much equity is available in your home? Our friendly branch team and home loan specialists are ready, able, and experienced in helping our members find the best option for their unique situations.

Deciding whether or not to pursue a Home Equity Line of Credit to tackle your debt consolidation is a big decision. If you’re ready to apply, click here to get started online. If you’d need a more information or want to discuss your situation, you can reach us via phone at 804-274-1200, fill out our online contact form, or visit your nearest branch today.

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