According to a 2017 American household credit card debt study, the average American household with credit card debt has a balance exceeding $15,000. If this sounds all too familiar, you may consider consolidating several balances into a single home equity line of credit, or HELOC. Here are the pros and cons of this approach:
Before signing up for a HELOC, research all your options for consolidating and/or liquidating high credit card balances. For example, you might use the “snowball method” to pay off low balance credit cards first or implement a 3-year plan to settle your debts.
Regardless of the method you choose, taking steps to modify poor spending habits is often the smartest way to climb out of credit card debt and secure a debt-free financial future. Contact an Alloy Silverstein accountant and advisor for assistance in setting up a sensible plan to achieve peace of mind.
Further Reading on Managing Credit Card Debt:
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