| Taking out a home equity loan is one of the | | | | Note, however, that interest rates for bad credit |
| time-tested ways to get out of debt. There are two | | | | applicants are generally higher by a few percentage |
| general kinds of home equity loan available to | | | | points. If your credit is bad but you still need money, |
| borrowers with bad credit history - depending on your | | | | you will unfortunately have to bite the bullet and take |
| specific financial situation; you can either take a 2nd | | | | out a higher-interest loan. |
| mortgage, or a home equity line of credit (HELOC). | | | | If you need a steadier cash flow, consider a HELOC. It |
| You need to know how each works in order to decide | | | | will allow you access to a decent credit limit at interest |
| which one to apply for. Each has its uniquely different | | | | rates lower than traditional lines of credit. Be sure you |
| details and methods of dispensing payments to you, | | | | control your spending, because unwise use of HELOC |
| and of you paying them back. | | | | can get you into even more debt (and cause you to |
| If you need immediate relief from an overwhelming | | | | lose your home). Always consult and talk at length with |
| number of creditors demanding instant payment, you | | | | a mortgage representative over many days before |
| will benefit from a 2nd mortgage. This type of home | | | | closing on a deal. Just remember that their job is to sell |
| equity loan allows you to borrow a fixed amount with | | | | you a loan. Beware predatory lenders. |
| a fixed interest rate, and is best for consolidating loans. | | | | |