Consolidating credit card debt into line of credit
Therefore, the total equity in your home is $125,000 (minus the $12,000 to $15,000 in realtor’s fees and transfer taxes you would incur in selling).
You put 20 percent down at the time you bought the house, and now owe approximately $70,000 on it.As such, many people use a HELOC for debt consolidation, since it usually significantly lowers the interest rate as they work to pay off their debt. “Typically, home interest payments are tax deductible, so that can be beneficial for those that itemize their deductions,” says Reiss.Although a home equity line of credit can be a great solution for your debt problems, run through this checklist first to be sure it will work for you: “People often get into debt because they’re buying nonessential things.“It’s a line of credit that you can borrow from at any time within the loan’s term, but because it’s revolving, it’s sort of similar to a credit card, rather than a traditional home loan,” he says.The money is there when you need it, but you don’t have to borrow it.Are you carrying credit card debt with sky-high interest rates — in addition to your student loans? But think carefully before you use a personal loan to pay off credit cards.
One potential option — which holds both upsides and downsides — is refinancing this debt by taking out a personal loan from a financial institution such as So Fi, Citizens Bank, or Upstart.
If you want to consolidate your bills into one manageable payment with lower interest, a home equity line of credit (HELOC) might be the right move for you.
“A HELOC is secured by the equity you have in your home,” explains David Reiss, professor of law and writer of REFin Blog.
Visit your local BB&T financial center to speak with a friendly, experienced BB&T lending specialist about finding a debt consolidation loan with rates and terms that meet your needs.
Or, if you're thinking about using a home you own (or other real estate) as collateral, a BB&T Home Equity Loan or Line of Credit may be right for you.
Carrying around high-interest debt can be tough on your finances.