Exploring HELOC Options for Homeowners with High Credit Card Debt

Economy

1 year ago

News sources:

Credited from: CBSNEWS

The current average homeowner holds about **$320,000** in home equity, making it an opportune time to consider a **HELOC** as a solution for credit card debt.
**HELOC rates** average **8.36%**, which is substantially lower than the **23% average credit card rate**, potentially leading to significant interest savings.
While it is **possible** to secure a HELOC with high credit card debt, factors like **debt-to-income (DTI) ratio** and **credit score** are crucial for qualification.
Some lenders might accommodate higher DTI ratios if the borrower maintains **substantial home equity** and has a solid credit history.
Improving your **credit score** and shopping around for competitive rates can enhance your chances of securing a favorable HELOC.

For more details, read the full article [here](https://www.cbsnews.com/news/can-you-take-out-a-heloc-with-high-credit-card-debt/).