Should I use HELOC to Lower My Debt Payments? Although you will probably save more by paying off your current debt as quickly as possible, using a HELOC, or Home Equity Line of Credit, can free up some of your monthly income. Use this financial calculator to get an idea of just how much money can be freed up each month by using a Home Equity Line of Credit to pay off your debt.
With all of the expenses that people have to pay today, sometimes debt can get out of hand. The credit cards get charged to the limit, multiple loans are taken out, and bills continue to pour into the mailbox. If you need a break from the overwhelming stress of having too many bills and not enough money, consider consolidating your debt with a Home Equity Line of Credit.
This calculator will compare the total of your monthly payments under your current situation with the monthly payment of a Home Equity Line of Credit. Moreover, it will display the total of the monthly payments required to pay off the debt for both options, as well as the annual tax savings.
A Home Equity Line of Credit, or HELOC, is a practical way to deal with debt. Consumers can acquire a quick source of funds with a relatively low interest rate and the bonus of tax benefits. Consider if this is the right step for you with this calculator's help.
Calculator Legend
- Interest Rate: Enter the interest rate attached to the loan as a percentage.
- Length: Enter the number of years or term attached to the loan.
- Closing Costs: Enter the total of all closing costs on the loan.
- Your Tax Rate: Enter the tax rate for your tax bracket.
- Auto Loan Amount: Enter the amount that you owe on this loan.
- Auto Loan Payment: Enter the minimum monthly payment required.
- Auto Loan Interest: Enter the interest rate as a percentage for this loan.
- Boat/RV Amount: Enter the amount that you owe on this loan.
- Boat/RV Payment: Enter the minimum monthly payment required.
- Boat/RV Interest: Enter the interest rate as a percentage for this loan.
- Credit Card 1 Amount: Enter the amount that you owe on this account.
- Credit Card 1 Payment: Enter the minimum monthly payment required.
- Credit Card 1 Interest: Enter the interest rate as a percentage for this account.
- Credit Card 2 Amount: Enter the amount that you owe on this account.
- Credit Card 2 Payment: Enter the minimum monthly payment required.
- Credit Card 2 Interest: Enter the interest rate as a percentage for this account.
- Other Accounts Amount: Enter the total amount that you owe on all other accounts.
- Other Accounts Payment: Enter the total of the minimum monthly payments required.
- Other Accounts Interest: Enter the interest rate as a percentage for this.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.
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