SPONSORED: How a home equity line of credit can help you get out of debt


Credit card debt plagues about half of American households. According to recent statistics from the Federal Reserve, the average indebted household has $15,422 in credit card debt alone. Many of these families need a get-out-of-debt plan that goes beyond just paying off the minimum balance monthly—one that puts them back on the path to financial success.

A Home Equity Line of Credit, or HELOC, can be an effective way to get out of credit card debt. It works by allowing you to borrow money against the equity in your home, which is used as collateral. Equity is the difference between your home’s market value and any amount still owed. Most lenders will consider a calculation of Loan-to-Value (LTV) to determine how much equity may be leveraged with a HELOC. Eighty percent LTV is considered a common maximum by many lenders.

The biggest advantage of opening a HELOC is the savings on interest payments. HELOCs are secured loans, meaning they typically have significantly lower interest rates than other loans, since they are tied to collateral from your home. Some lenders, including Mountain America, arrange the HELOC account much like a credit card or any type of open-ended credit. You can borrow money as needed, up to the credit limit, just by using your Mountain America Equity Visa® Card or check.

The benefits of opening a Mountain America HELOC include competitive, low rates; no origination fees or closing costs options; no annual maintenance fees; and the ability to borrow, repay and borrow again without reapplying. And, unlike other types of consumer loans, the interest on a HELOC may be tax deductible.*

As with any financial decisions, consult your financial advisor before opening new lines of credit. For more information, visit www.macu.com or call 1-888-288-1782.

This article is sponsored by Mountain America Credit Union.

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