Equity Loan Information

Are home equity loans a good way to consolidate debt? If not what is better?

Instead of paying on 2 credit cards that are fairly high balances, should I pay them off with a equity loan and have one payment and keep my credit card balances zeroed out each month.....

Public Comments

1. Debt consolidation is a convenience. "Should" is a good point to consider. If you are looking only at simplicity, then yes. If you are looking at lowing interest rates, then you might want to stick with transferring balances on the credit accounts instead.
2. Debt consolidation is the best:
3. That depends on where you live. In some states a home equity line of credit can adjust in time to a very high interest rate and is revolving just like your cards are. I would look at it as the interest is tax deductible in most situations. So look at all options but you may want to choose a fixed rated second deed of trust as a better option. Look at the rates in your state for the best offerings. All states have some sort of limits on the max. But to answer you yes if you have the equity and the credit score then you should probably do so. Just get all the information you need to make an informed decision. Good Luck I am a Loan Officer
4. It may well pay you to get a home equity loan. This webpage has an explanation of the different ways to go about it, and there are some useful links which will provide more information. I hope this helps. Good luck!