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Home » Exchange Calculators » Should I use HELOC to Lower My Debt Payments?

Should I use HELOC to Lower My Debt Payments?

Input Information
Loan Information




Amount ($)
Payment ($)
Interest (%)

Financial Analysis (Switch to Plain English)

Amount :

Monthly Payment :

Average Interest Rate :

Payoff Timeline :
0 Yrs 11 Mts
30 Yrs 0 Mts

Total Monthly Payments :

Total Deductible Interests :

Avg Annual Tax Savings :

Plain English Help (Switch to Financial Analysis)

HELOC stands for Home Equity Line Of Credit. HELOC is an option you might want to consider if you have certain amount in your home equity and your debt payments are more than you can afford to make each month. In addition, it can help you lower your interest rate on those same debts. To get an idea of how HELOC can affect you and your debt, let’s take a look at an example.

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.