"Sports do not build character. They reveal it."Heywood Broun
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Debt Consolidation Makes Sense 'Only' With Low Interest Rates
Credit that cannot be managed or is not being repaid requires debt consolidation. Debt consolidation offers borrowers with a chance to repay their high interest loans at low interest rate. You must be thinking, 'it sounds good, but how is it possible.' ...
Kill OFf Your Evil Credit Cards with a Home Equity Line of Credit.
Ok, tired of those ridiculous credit card statements? Time to refinance! If you own a home chances are your bank will help you out with your bills...and at rates that at a fraction of what your existing credit card rate. If you are paying the minimum ...
Lowering Credit Card Debt - 3 Tips To Eliminating Credit Card Debt
Eliminating your credit card debt is as simple as switching lenders. By finding better interest rates, you can shave off years from your payment schedule and save thousands of dollars in interest charges. With these three tips, even with the same monthly ...
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In the last five years, values of homes throughout the United States have increased dramatically. With that, the American public has resorted to an unprecedented amount of borrowing against their homes. People have used their home equity to consolidate debt, buy vacation homes, and buy more real estate. A few smart people have done something even better with their equity – put it aside for emergency use.
While a home equity loan has a fixed repayment schedule that isn't too flexible, a home equity line of credit, or HELOC, is perfect for emergencies. You can apply for one when times are good and you don't need the money. Then, if you find yourself in need of cash at some time in the future, you can borrow against your equity on an as-needed basis. The more flexible repayment terms and the fact that you only need to withdraw funds when you need them make a line of credit great for emergency use.
As good as a HELOC can be as an emergency tool, it should not be your only emergency tool. It would be nice to be able to withdraw cash from your credit line should you lose your job, for instance. But even a HELOC needs to be repaid, and sooner or later, you will have to start repaying the loan. Another concern would be that home values might decrease, which could affect your ability to borrow against your home.
A line of credit would make a good component of a thorough emergency plan, but it should be just one component. A HELOC should not considered a replacement for a good, old fashioned savings account. Nor should it be considered a replacement for long term investments, such as a mutual fund or a 401(K)-retirement plan. Instead, a HELOC should be just one piece of a good financial package.
If things are going well for you and you have a reasonable amount of equity in your property, you should consider applying for a home equity line of credit. Even if you do not have a use for the money now, you can save it for that theoretical "rainy day." Just don't make it your only umbrella.
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HELOC, Car Loan Delinquencies At Record HighsU.S. News & World Report, DC - Jan 7, 2009In the latest sign that consumers are under financial stress, indirect auto loan and home equity lines of credit (HELOC) delinquencies reached their highest ... |
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Credit Cards: You Asked, We AnsweredNow - Jan 8, 2009There's no better feeling than being HELOC free! Question: I request credit reports, but have not been able to find any way to find out my credit score. ... |
PersonalFinance: Should you refinance?Reuters - Jan 8, 2009Home equity lines of credit (HELOC) currently are charging rates as low as 3.5 percent; they are cheaper than regular mortgages now. But that may not last. ... |
Home DepotExaminer.com - Jan 2, 2009... thing this downturn has taught us: you need liquidity and you can almost always borrow that money back if you need it through a 2nd mortgage or HELOC. ... |
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