To Keep daily life going people needs money . Sometimes money has been so crucial that you need that at any cost the reason may be for any type of emergency like medical billing ,housing maintenance or any other type of liability at dead end. You can use the money which you have got from Home equity loans to meet all the contingencies.
Advantages :
1. If you are in the taxable Income Bracket then you will get deductions for the interest you will pay for the repayment of Loan .
2. You will get maximum amount of loan against the home equity you have built up for many years i.e. because appraisals are lenient.
3. Interest rate is lower side in Home Equity Loans compared to Credit Card rate and Personal Loans.
4. It is easy to use the money in different way i.e. to meet emergencies , to meet credit card debt or debt consolidation , urgent home maintenance or whatever your requirement at that moment
Disadvantages
1. As the amount sanctioned is lenient so it is a healthy and lump sum amount which can cover almost entire amount of your Asset. So you can loose the Asset if you can not repay the amount properly.
So when you are using the amount ,prepare a plan chart on the basis of payment and your earnings. Pay and Calculate with your earnings so that the loan amount may not put you in another debt trap.
Friday, April 10, 2009
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