The Jarrettsville Federal Blog

26

by Denise Busson, Vice President, Mortgage Lending
The New Year has officially begun after a holiday season filled with family, food, fun, presents…and BILLS!   A new iPhone 7 for your teenage daughter?  Check.  A pair of shiny, top-of-the-line basketball shoes for your son?  You got it.  And let’s not forget the electric blue Razor scooter for the little one.   Are you wondering how you will descend from the mountain of holiday debt?

One solution is to break the total down into smaller chunks and incorporate payments into your monthly budget.  You may have to give up something else for a few months (that cup of Starbuck’s every morning or the Friday night pizza, maybe?).  The longer you take to pay it off, the more interest you’re going to pay.  If your debt is on a high-interest retail credit card, that may mean some huge fees. 
Another solution is to pay off your high-interest credit cards with a home equity line of credit (HELOC).  Jarrettsville Federal has just introduced a new home equity line of credit, which is a pre-approved line of credit that may be used essentially for anything, including holiday bills, home improvements, a family vacation, or college expenses.  The rate is competitive compared to the 18-21 percent of a regular credit card.  Since the line is secured by real estate (your home), the interest may be tax deductible, but it is always advisable to speak to your tax preparer about your personal deductions.  

Using a line of credit is easy – you write checks against the total amount, and instead of making your payment to the high-interest store credit card each month, you make it to the line of credit, paying much less interest.  In addition, there are no closing costs as long as the line is kept open for 36 months.  Your maximum amount of credit will depend on the amount of equity you have in your home.  If your home is worth more than you owe on it, then you have equity.  Come in to the branch and talk to one of our loan specialists to see if you qualify.
Jarrettsville Federal is an Equal Housing Lender.

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