For homeowners who have benefited from the recent boom in home values there are ways to make your home's value directly translate into you saving money. Today, many are taking advantage of low interest rate home equity lines of credit with the specific purpose of bill consolidation. Bill consolidation makes it so you only have to make a single payment each month, in this case to your home equity line.
Because a home equity line of credit can be paid off over many, many years, the monthly payment is less than your total previous payments. Combine this with the low interest rates on home equity lines and your savings are compounded even further. If you are a homeowner who is also carrying many other debts, a home equity line for bill consolidation may be right for you.
|Jennifer Mathes, Ph.D.|