Consolidating debt home equity line

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If you know you're not going to pay off your credit card balance every month, take a look at a low interest credit card option to help keep interest costs down.Also be aware of the temptation of the "Buy Now Pay Later" offers - make sure the funds are available to pay that bill before it is due.Moving your outstanding credit balances to one low rate payment could save you money and time—making it easier to manage your money.Here are some of the benefits that may come with consolidating your outstanding debt: If you're buying a home and have a 20% down payment, or you're a homeowner with at least 20% equity in your home, the RBC Homeline Plan could help you consolidate your debt.Home equity loans can be used to consolidate account balances from multiple credit cards or installment loans into a single loan, while offering the added benefit of consolidating multiple payments into a single monthly payment.Using home equity for debt consolidation can be beneficial if the repayment period for paying off the home equity loan is shorter than it would be for your existing debts, or, if the interest paid over the repayment period is less than what you would pay without consolidating your debt.

With a home equity line of credit, however, your utilization would theoretically go up and down—less favorable on your credit score.

So instead of making multiple payments, you're now just making one.

Even when you're keeping on top of your payments, having to juggle different loans or credit cards with different interest rates and due dates can be stressful.

One of the key factors in your credit rating is called credit utilization.

In other words, if you have a credit card with a ,000 limit and you owe ,900, you have utilized almost all the credit on that card.

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