How Does a HELOC Help You Handle Your Debt?

What if you could pay off debt faster, simplify your finances and even save money in the process? Imagine transforming multiple monthly payments into one easy, manageable bill. A Home Equity Line of Credit (HELOC) could help you do just that!

Homeowners can use a HELOC to consolidate their existing debts into a single payment, possibly with a better rate and lower total payment amount. Here’s how you can take advantage of this financial strategy to manage your debt and make your home equity work for you.

What Is Debt Consolidation?

Debt consolidation means combining multiple debts into a single loan or line of credit. Instead of making several monthly payments to different lenders (credit cards, medical bills, personal loans, etc.), you roll them into one manageable payment — ideally at a lower interest rate. This can help you:

• Simplify your finances
• Lower your overall monthly payment
• Save money on interest
• Pay off your debt faster

Why Consider a HELOC?

If you’re a homeowner, a HELOC is one of the smartest tools available for debt consolidation. A HELOC lets you borrow against the equity in your home — typically at a much lower interest rate than most credit cards or personal loans.

Here’s how it works:

1. Apply for a HELOC: Apply for a HELOC online, or call or visit your local Horizon branch to get started.
2. Pay Off Existing Debts: Once your HELOC is set up, you can use the funds to pay off high-interest debts such as credit cards, personal loans or medical bills. Instead of paying multiple creditors, you now only need to focus on repaying your HELOC.
3. One Payment, One Interest Rate: Instead of keeping track of several payments, due dates and interest rates, your debt is now consolidated into a single payment. Plus, because HELOCs generally offer lower interest rates than credit cards you could save money on interest over time. This may help you pay off your debt more quickly.
4. Revolving Credit: HELOCs are a revolving line of credit, meaning you can borrow up to your credit limit as needed and repay it over time. Once you pay down the balance, that amount becomes available again. This flexibility can help you manage any future financial needs while keeping your overall debt under control.
5. Flexible Terms: Many HELOCs offer flexible repayment terms, so you can pay off your debt at a pace that works for your budget. You’ll often have the option to make interest-only payments for a certain period, giving you extra flexibility while managing your debt.
6. Focus on Paying Down Debt Faster: With a single payment and potentially lower interest rates, you may find it easier to prioritize paying off your debt. The simplicity of consolidating your payments into one can also reduce stress and help you stay on track with your financial goals.

Is It Right for You?

If you’re ready to take charge of your finances and you own a home, a HELOC for debt consolidation could be a game-changer. It’s a great option for members who:

• Are paying high interest rates on multiple credit cards or loans
• Want to simplify their monthly bills
• Prefer flexibility and control over their finances

Let’s Talk

At Horizon, we’re here to help you build a brighter financial future. If you’re interested in consolidating your debt or want to learn more about how a HELOC could work for you, we’re just a call or visit away.

Stop by your local branch, call us at 800.852.5316, or visit our HELOC webpage to get started. Let’s turn your debt stress into financial success!