Consolidate Your Debt With A Home Equity Loan And Improve Your Credit Score

If you have credit card debt at a high interest rate, or even at an average rate, you may want to consider getting a home equity loan to consolidate your credit card debt for a few reasons.

1. Having the credit card, but not being maxed out, or having the credit card paid off will boost your credit score. The amounts you owe make up about 30% of your credit score, that could be a huge difference if those accounts are paid off.

2. You can have a lower payment because of the lower interest rate you can get with a home equity loan. If having a lower payment helps you be able to make the payment on time, that will boost your score tremendously.

3. Lowering your payment will lower your debt to income ratio, which will help you when you go to get any other kind of financing in the future.

4. A home equity loan is usually set for about 5 years before it is paid off. Sometimes, making the minimum payments on your credits will never pay them off.
As you can see, there are some great benefits to consolidating your debt with a home equity loan. Its definitely something worth considering if it will lower your rate and lower your payment.

About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended home equity lenders online, visit this page: http://www.abcloanguide.com/homeequityloan.shtml

More Useful Resource and Updates on california home equity

• Investors may hinder BofA's loan workouts (The Charlotte Observer)
  (By Christina Rexrode) crexrode@charlotteobserver.com Countrywide Financial Corp.'s legal settlement last month, which requires it to relax the terms of some 400,000 mortgages, was good news for struggling homeowners. But a New York law firm says the settlement isn't fair to the people who invested in Countrywide's mortgage-backed securities, and it's trying to drum up interest in ...



• Fannie, Freddie Boost Effort to Minimize Foreclosures (Update4) (Bloomberg)
  Nov. 11 (Bloomberg) -- Fannie Mae and Freddie Mac , the largest U.S. mortgage-finance companies, will accelerate anti- foreclosure efforts by streamlining loan modifications to lower monthly payments for more struggling homeowners.



• Fannie, Freddie Boost Effort to Minimize Foreclosures (Update1) (Bloomberg)
  Nov. 11 (Bloomberg) -- Fannie Mae and Freddie Mac , the largest U.S. mortgage-finance companies, will accelerate anti- foreclosure efforts with a new loan modification program designed to cut monthly payments for struggling homeowners.



• Behind BofA's Countrywide cleanup (CNN Money)
  Talk about being where the action is: Ground zero for today's financial crisis is the business of home mortgages, and Bank of America's Barbara Desoer oversees the biggest collection held by any financial institution in the U.S.



• U.S. Foreclosure Filings Rose as Home Prices Fell (Update1) (Bloomberg)
  Nov. 13 (Bloomberg) -- More than a quarter million U.S. households received a foreclosure filing in October even as state laws designed to protect property owners from losing their homes slowed the pace of defaults, RealtyTrac Inc. said.



• Zillow: Half of home sellers in past year lost money (The Arizona Republic)
  Nearly half of Valley residents who sold a home in the past year lost money on the deal, according to a new study by online real estate networking and data service Zillow.com.



• California town is epicenter of U.S. housing crisis (International Herald Tribune)
  Mountain House, California, shows how the U.S. housing crisis is contributing to a broad slowdown of the American - and global - economy, as families who feel burdened by high mortgages are pulling back on their spending.



• Sweeping mortgage aid plans launched (Detroit Free Press)
  More relief is on the way for homeowners -- even those who are not delinquent on their mortgages.