Is consolidating debt bad for your credit Chatte rasee

A home equity line of credit is an open-ended account similar to a credit card that you can borrow against and repay.

Home equity loans and credit lines often have lower interest rates and higher borrowing limits than other types of loans. You’re securing your credit card debt with the equity in your home.

A home equity loan is a closed-ended account that’s repaid over a period of time.When you have balances on several different credit cards, paying them off can be a long, challenging process.It's hard to make progress paying off your debt when you have to split your payments between say, seven different accounts.You can typically borrow up to the cash value of your loan and use the proceeds to consolidate debt.Your insurance company won’t require you to make payments as long as the loan is less than the cash value of the policy, but it’s a good idea to make payments anyway.

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