There is no doubt that we are currently finding ourselves in a tough economical crisis. As a result, many of us have become the victim of inflation and an increase in expenses. Seeing as job payouts were not increased to offset this increase in expenses, this has led many to find themselves in a large amount of debt. Some of the most common types of debt that people end up having include mortgage payments and credit card debt. Unfortunately, due to the current economical situation, many people tend to find themselves in more debt than they can actually afford. For this reason, many people are known to look at various alternatives by which they can reduce their debt levels.
This is where the HELOC calculator comes in to play. HELOC stands for Home Equity Line of Credit. Taking advantage of HELOC simply allows one to reduce their monthly debt outgoings by a vast margin. As long as you have some form of equity in your home, you will be able to reduce your monthly outgoings by quite a significant margin. Even though this is the case, it is important to remember that this option is only limited to those that are feasible. This is what the HELOC calculator helps in achieving. This particular calculator helps identify whether or not one would be able to take full advantage of HELOC or not. The great thing is that the calculator is easy to use and user friendly.
SAMPLE: If you have $9,000.00 in debt from a variety of loans with different interest rates, it might take you 0 year(s) and 11 month(s) to pay it off if the average interest rate of these loans is 12.93% and you are paying $910.00 per month. With HELOC, you would have a 5.000% interest rate and your monthly payments would drop dramatically to $48.31, though it will take you 30 years to repay the debt.
By paying off your loans without HELOC, your $9,000.00 loan will cost you a total of $9,567.93 to repay. Through HELOC, it will total $17,393.02, though $8,393.02 of that is considered tax deductible interest. The interest payments made without HELOC are not tax deductible.
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