Are you trying to make a big life change but need a little financial help? With all the financing choices out there, it can be challenging to find the right loan or credit option for your situation.
If you have a large outstanding debt on one or more credit cards, you may be struggling to make any progress toward paying the debt down if you are only making minimum payments. It can take years of making the minimum payment to actually pay off the balance, because interest rates make up a large portion of each payment.
One way to solve this problem: a Home Equity Line Of Credit from your local community bank.
Home Equity Line of Credit vs. Traditional Loans
Home Equity Line Of Credit options work differently than traditional loans, because they truly act like a line of credit for you to access when you need the cash. This means that your community bank will approve you to borrow up to a certain amount of your home value. Once your line is set up, you can reuse it throughout the agreed upon terms.
Another plus to using a Home Equity Line Of Credit to pay off your credit card debt is the low interest rate afforded to these secured loans. Most Home Equity Line Of Credit interest rates are just a step higher than primary mortgage rates, and they are usually much lower than any of the high interest rates on credit cards. Therefore, using a Home Equity Line Of Credit can help you pay off your credit card debt much sooner, since less money goes toward interest payments and more toward principal.
Additional Benefits of a Home Equity Line of Credit
The interest charged on a Home Equity Line Of Credit may also be tax deductible for those who itemize deductions on their tax return. Because of the combination of interest and tax savings, you may find this option advantageous over other debt management strategies. You’ll want to consult your tax advisor.
Finally, using a local community bank for your Home Equity Line of Credit recycles money throughout the local economy. The money community banks take in from deposits is then loaned to the individuals, families and businesses to keep the communities strong and vibrant. Consider a Home Equity Line Of Credit from your community bank today.
Meet with a Chelsea State Bank Loan officer to determine what is best for you. See if a little or big life change is in your future!
