Your home-buying experience should be an exciting time, yet the process ahead is not without its drawbacks and potential problems. For many home-buyers, failing to do enough research at the beginning of the process can lead to problems down the road, and in real estate those problems can be costly.

How Does a Home Equity Loan Work?

If you’re looking for a way to deal with debt that is both flexible and affordable, a home equity loan may be a good solution. For homeowners who have built up some equity in their homes, this type of loan allows them to borrow from the accumulated equity and use it to pay down high-interest debt. Here’s a closer look at how home equity loans work, and when they work well for debt consolidation.

If you want to save money and make some progress paying off the bills and other debt you owe, you should consider accessing the equity in your home for a debt consolidation loan to achieve your goal of being debt free.

The two main ways to access the equity in your home for a debt consolidation loan from your credit union include a home equity loan and a home equity line of credit, better known as a HELOC. Below are some of the details of a home equity loan vs HELOC so you can see the pros and cons of each.

Securing a debt consolidation loan and paying down your obligation can fast-track you to an improved credit rating and financial stability. But success requires personal vigilance and fiscal responsibility.

When hard-working people find themselves swimming in high-interest debt, it’s time to look for a lifeline and pull yourself out. Leveraging your home equity to consolidate monthly payments that are crushing your financial health and quality of life can be a game-changing solution.

Life happens, and along with it often comes debt…and you know what? That’s ok! Whether we have debt in the form of student loans, medical bills, an emergency of some sort that had to be financed, or too much spent on credit cards - we have all had our share of debt to repay.

5 Tips to Relieve Your Debt and Stress

The average debt load for Americans, including mortgages and car loans, is $132,529. Of that, over $16,000 is tied up in credit cards. All of this debt contributes to a high level of stress for many families.