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A HELOC (Home Equity Line of Credit) allows you to borrow against the equity in your home, typically at a lower interest rate compared to other types of debt, such as credit cards or personal loans.
If needed, you can use a HELOC to pay off high-interest debt or fund home renovations. Lenders typically allow you to borrow up to 85% of your home's value minus any outstanding mortgage balance. Once your HELOC is set up, draw funds as needed to pay off your higher-interest debts.
For example: Suppose you have $20,000 in credit card debt at an 18% interest rate. If you have $50,000 in home equity, you might get a HELOC with a 9% interest rate. By using the HELOC to pay off the credit card debt, you reduce your interest payments significantly, making it easier to pay down the principal.
HELOCs aren't for everyone, though. If it doesn't sound like the right choice for you, there are other options available, including Home Equity Agreements, debt help, incredible credit card welcome offers, and more. Take a look at the list below and find the solution that's right for you:
Ask this company to pay off your credit card debt
If you’re drowning in high interest credit card debt and don’t have a way out — but you own a home in Ohio and have decent equity built up — this is a godsend. You could tap into up to $400,000 to pay off your credit card debt, all without affecting your mortgage rate.
Rocket Mortgage is actively helping homeowners use their home’s equity to wipe out toxic high interest debt. Their tool finds your lowest eligible rate and gets you the money you need so you can use it immediately. No hidden fees. No long waits. No hassle.
Slash your high interest burden without giving up your current mortgage rate.
You might be eligible if you check these 3 boxes:
- You’ve owned your home for 2+ years.
- You’ve built some equity.
- Your credit score is 680 or higher.
See if your credit card debt is eligible for this debt relief program
If you have a lot of debt, getting rid of it can feel stressful (and nearly impossible). Here’s the problem: the longer you put off tackling it, the harder it may get to fix. If you don’t take control of it early on, it can add undue stress to your life for years. But what if there was a way to get rid of unsecured debt?
Freedom Debt Relief could help. If you have more than $30,000 in debt from credit cards, medical bills, collections, or personal loans, their certified debt specialists may be able to help you resolve your debt for less than you owe — with one low monthly deposit.
Best of all? There are zero upfront settlement fees, and you could reduce debt in as little as 24-48 months1 <p>Our estimates are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states, including New Jersey, and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.</p> . To get started, just answer a few simple questions and get connected with a Certified Debt Consultant. It only takes a few minutes to see if you qualify, and the consultation is completely free!
See if your $30k+ in credit card debt is eligible for Freedom Debt Relief
Ohio Driver? Cancel your car insurance
Driving without car insurance is illegal in almost every U.S. state.
This tool can help you see if you’re overpaying for car insurance in just a few clicks. You could be shocked by the difference. $159 per month is what my first quote was. I thought that was the best price, don’t even look anywhere else. Right? Wrong.
I used this tool and now I’m able to pay just $47 a month for two cars.2 <p>Actual savings and coverage options vary based on factors such as driving history, location, and insurer policies. The rates shown in this example may not reflect what every user will qualify for.</p> If you want to try this tool and compare and potentially score same-day savings, here’s what to do:
- Click the link below and enter your zip code, date of birth, and phone number.
- Answer a few questions about your car’s make and model to get matched with top offers.
- Choose the best option for you.
Compare options now and see if you could score same-day savings today!
Don’t forget to cancel your existing policy so you could maximize your savings. I can hardly believe I waited so long to do this, but I’m glad I finally did. It only took me two minutes. Super fast. You have to trust me on this. Just try it out.
Stop getting ripped off by credit card companies
If you have credit card debt, you know that paying your bill each month is anxiety-inducing … and sometimes close to impossible with what you have in the bank.
If that’s you, a company called LendingTree3 <p>LendingTree, LLC is a Marketing Lead Generator and is a Duly Licensed Mortgage Broker, as required by law, with its main office located at 1415 Vantage Park Drive, Suite 700, Charlotte, NC 28203, NMLS Unique Identifier #1136. LendingTree, LLC is known as LT Technologies in lieu of true name LendingTree, LLC in NY. LendingTree technology and processes are patented under U.S. Patent Nos. 6,385,594 and 6,611,816 and licensed under U.S. Patent Nos. 5,995,947 and 5,758,328. © 2024 LendingTree, LLC. All Rights Reserved. This site is directed at, and made available to, persons in the continental U.S., Alaska and Hawaii only. Terms and Conditions may apply. </p> wants to help.They can match you with loan providers that could help you pay off your debt quickly.
Think about it this way: For example, $30,000 in credit card debt at 25% APR will cost you $622.60 every single month in interest alone. But, with a rate as low as 6.50% APR (possible through LendingTree’s lenders), you’d only pay $160.69 interest.
That’s over $460 a month you’d get to keep for yourself in this scenario! Even better, you don’t need a perfect credit score, and checking for loans won’t affect your credit.
Truthfully, this company exists to help you get ahead in life. They have a 4.5/5 rating on TrustPilot with more than 15,000 verified reviews, and you can see your options in a matter of minutes. It’s certainly worth a shot if you’re feeling suffocated by debt.
See if your $30K+ credit card debt is eligible for options with LendingTreePay no interest until nearly 2028 with this no annual fee card
If you're struggling to pay down high interest debt (or you're planning a major purchase this year), this might be the exact thing you need. There's a card that allows you to completely pause credit card interest until nearly 2028 ... and the best part is that it could be easier than you think.
Wells Fargo Reflect® Card(Rates and fees) is an extremely powerful card that gives you 0% intro APR for an astounding 21 months from account opening on purchases and qualifying balance transfers. (Then APR is 17.49%, 23.99%, or 28.24% Variable.) That's right — you can now finance large purchases you've been sitting on without paying massive interest. Or, transfer crippling high interest debt to this card and let your payments go directly to paying down your balance, without piling on additional interest charges — all with no annual fee.
This is by far one of the longest intro APR periods we've ever seen. Plus, this card comes with even more perks like cell phone protection, roadside dispatch, and you could access deals from various retailers and merchants through My Wells Fargo Deals, making it practically a no-brainer.
Access your home equity to cover debt — no monthly payments for 10 years
If you're carrying high-interest debt, your home’s equity may be able to help pay it down — without adding another monthly loan payment.
This isn’t a HELOC or refinance. Instead, Unlock offers a home equity agreement (HEA), which gives you cash today in exchange for a share of your home’s future value.
With Unlock, you could access up to $500,000 of your home’s equity and make no payments for ten years.
- Start by entering your property address here. If you move forward, underwriting will review your credit and property details before final approval.
And don’t worry — Unlock has an A+ rating from the BBB. So see what you’re eligible for, and you could have the funds you need to end your toxic debt loop sooner than you think.
Get financial guidance without the cost with this 100% free plan
Financial plans don’t need to cost hundreds or require meeting with an advisor. Studies show that simply having a plan significantly improves confidence and outcomes.4 <p>Source: Charles Schwab Modern Wealth Survey 2024</p>
Our tool creates a 100% free personalized financial plan — no advisor fees, no sales pitches, no pressure. Just clear guidance based on your financial situation.
Here’s how to get started:
- Click the link below.
- Answer a few quick questions: your goals, income, and spending habits.
- Securely link your accounts through Plaid (checking, savings, cards, etc.).
- Receive your personalized money plan instantly, including recommended spending ranges, savings targets, and simple steps to feel more in control.
The tool analyzes your real spending patterns and gives you a clear breakdown of where your money should go each month, without guilt or guesswork. It’s 100% free, and you’ll finally know exactly what to do next with your money.
Click here to get your free financial plan and see the advice that an advisor might charge you hundreds for.
Stop going into debt over expensive home repairs when this exists
Sounds crazy. And maybe you’re not even sure if this is real. But … you’re probably curious anyway. Choice Home Warranty makes it so you might be able to save $100s in home repairs!
They’ve been around since 2008 (so you know they’re legit) and they offer affordable plans to cover appliances and systems in your home that could break down from routine wear and tear.
Think of it like this: Say your air conditioning unit breaks down during a heatwave. Instead of paying $1,500 for repairs, you may only need to pay a $100 service fee with Choice Home Warranty, and their techs come and fix it ASAP. This could save you $1,400 almost instantly!
Choose a plan here and you can still lock in their ultra-low 2024 rates (for a limited time). Then, whenever a covered system in your home breaks down, all you have to do is make your claim online or give them a call. Their team is available 24 hours a day, 7 days a week.5 <p>CHW reserves the right to offer cash back in lieu of repair or replacement in the amount of CHW's actual cost (which at times may be less than retail) to repair or replace any covered system, component or appliance. In the event that CHW makes such payment, CHW will provide written notification of the basis for the amount of the payment. First Month Free with purchase of any single payment home warranty plan. The product being offered is a service contract and is separate and distinct from any product or service warranty which may be provided by the home builder or manufacturer.</p>
Choose a plan from Choice Home Warranty here and lock in 2024 rates
P.S. Use the links above and you’ll get $50 off and 1 month free. We don’t know how long this will last, so take advantage of it today before it disappears.
Ask this company to help you reduce your tax debt (consultation is 100% free)
Past-due tax debt is overwhelming.
It weighs on your mind and causes massive anxiety. You end up emotionally and physically drained. Even worse when the IRS starts sending letters threatening wage garnishment and huge fines.
Alleviate Tax is designed specifically to help you get out of tax debt faster and could reduce some of the debt you owe.
While most tax companies just put you on a payment plan and file your taxes for you, Alleviate Tax talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
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- Get a cash-out refinance to access cash without a HELOC or second mortgage6 <p>Rocket Mortgage, LLC; NMLS #3030; <a href="https://www.nmlsconsumeraccess.org/">https://www.nmlsconsumeraccess.org/</a>. Equal Housing Lender. Licensed in 50 states.</p>
- Use the money to consolidate high-interest debt
- Might impact your monthly mortgage payment less than you think
- Use the simple calculator to estimate what you could get out of your home
- Great option for those with a 680+ credit score
Frequently Asked Questions
Home equity is the difference between the value of a home and the amount of money still outstanding on the mortgage. In other words, it’s essentially the portion of the home that is owed outright. This value can be expressed as a percentage or dollar amount. For example, a home valued at $400,000 with $100,000 remaining in mortgage payments has $300,000 or 75% worth of equity.
Some lenders may require a full appraisal to determine a home's value. However, automated valuation models, which consider local property values and recent home sales, are more common.
Home equity is one of the greatest financial benefits of owning a home. You can tap into the equity you built for multiple reasons, including:
- Debt consolidation: Pay off multiple other types of debt with your home equity loan or line of credit to keep your debt organized and potentially get a low interest rate.
- Home renovations: Use your home equity to help pay for important home renovations and improvements, which can in turn increase your home value.
- Medical bills and emergencies: Cover costly medical bills or other unexpected expenses by tapping into your home equity.
- Large purchases: Use your home equity to cover large expenses involved with weddings, buying a new car, or moving houses.
The most common way to access your home equity is a home equity loan or home equity line of credit (HELOC). There are a few other products as well, so let’s quickly break them down.
Home equity loan
A home equity loan is a type of second mortgage that’s granted based on the equity you currently have in your home. You’ll be limited to borrowing up to 85% of that equity value, with other factors such as your credit score and debt-to-income ratio also impacting the final loan amount.
You’ll receive your loan in one lump sum and will make monthly payments, typically at a fixed interest rate.
Pros
- Consistent monthly payments at a fixed interest rate.
- Relatively lower interest rates compared to personal loans or credit cards.
- Typically have repayment periods, spanning up to 30 years.
- If you use your loan for home improvements or repairs, your home equity loan interest payments may be tax-deductible.
Cons
- Your home is collateral, so if you don’t repay the loan, you could face foreclosure.
- You typically need at least 20% equity in your home to qualify for a home equity loan.
- You’ll need to pay closing costs, with are often around 1% of the total loan.
- It can take a month or longer to access your loan funds.
HELOC
Unlike a home equity loan, HELOCs work more like a credit card — as a revolving line of credit (with an approved credit limit) that you repay based on what you spend. Although some home equity loans have fixed interest rates, most HELOCs will have variable ones — meaning you might pay more or less interest on your borrowed amounts over the life of the loan.
HELOCs are split into two periods: the draw period and the repayment period. During the draw period, you can access funds anytime you need them. Typically, you’ll only need to pay interest on borrowed amounts during this time. Once you enter the repayment period, you can no longer borrow cash, and you’ll need to make regular payments on both the principal and interest.
The value of your HELOC likely won’t exceed 85% of your home’s equity, and approval will depend on your overall creditworthiness.
Pros
- Only need to repay what you borrowed (similar to a credit card) and not the full approved amount.
- Flexibility of accessing funds when you need it, sometimes in the form of debit cards, checks, ATM withdrawals, or online transfers.
- Ability to access funds up to 10 years (the draw period) before entering the repayment period (typically 20 years).
- Making regular payments could help boost your credit score.
Cons
- Rates are often variable, so even if rates are low when you take out a HELOC, they could be higher when it comes time to repay.
- Because you can access funds at any time and aren’t on a strict payment schedule during the draw period, it can be easy to run up a high balance.
- You could have to pay additional fees, such as an early cancellation fee, an inactivity fee, or a withdrawal fee.
- A HELOC borrows against your home equity, which can deplete your net worth and limit additional opportunities to borrow funds.
Home equity agreement (HEA)
A home equity agreement is a contract between a homeowner and an investment company that allows the homeowner to access funds from their home equity without taking out a loan. In exchange for a percentage of future equity, the homeowner receives a lump sum of cash.
The benefit of this agreement is that you don’t have to make monthly payments or account for accruing interest. Instead, you’ll need to repay the investor the principal plus the agreed-upon percentage of the home’s appreciation within a certain time period (typically between 10 and 30 years). If you sell your home within that timeframe, the investor will instead receive a portion of the home sale.
Pros
- Access to a lump sum of cash quickly.
- No monthly payments and no interest accrual.
- Typically lower credit scores are accepted compared to home equity loans or HELOCs.
- The lump sum payment is usually not taxable as income.
Cons
- You are giving up some of the profit (equity) when it comes time to sell your home.
- Repayments aren’t monthly, so you’ll owe a large sum by the end of the term.
- If you aren’t able to pay what you owe, you may be forced to sell your home.
- Your home’s value may skyrocket, increasing the amount owed at repayment.
Home equity investment (HEI)
Similar to a HEA, a home equity investment allows you to access cash from your home equity without a loan. The key difference between a HEA and a HEI comes down to the repayment process. While a HEA repayment is based on the home’s future total value, a HEI is based on the future change in value.
In other words, if your home value increases significantly when it comes time to pay off your HEI, you could be looking to pay quite a bit more than you originally received. Some HEI lenders offer a protection cap, establishing the maximum amount you need to repay regardless of home value increase. Conversely, if your home value decreases, some HEI lenders will share in the loss.
Pros
- Most HEI companies do not take debt-to-income into consideration for approval.
- One lump sum with no restrictions on how you can use the funds.
- No monthly payments and a long repayment term, up to 30 years.
- Secondary properties may qualify for a HEI as well.
Cons
- Will need to repay the investment either when you sell the home or with a cash-out refinance.
- Restrictions on location and property types that can qualify for a HEI.
- Since the cost is tied to the value of your home, you won’t know exactly how much you’ll need to repay.
- Risk of foreclosure if you are unable to repay your HEI.
When it comes to a home equity loan or HELOC, lenders can use different formulas to calculate how much you can borrow. The various factors taken into consideration include your creditworthiness, existing debt, your perceived ability to repay the loan, the appraised value of your home, and the loan-to-value ratio (LTV).
In general, the higher the amount of equity you have in your home, the bigger the loan amount you could receive.
With HEAs and HEIs, the current value of your home and your available equity are two large considerations. Since these companies benefit from an increase in your home’s value, some may apply a reduction to the appraised value to adjust for risks.