Despite 11 million homeowners still remaining underwater on their homes, home equity lines of credit are on the rise. Through October 2012, borrowers took out 7.2 billion dollars in home equity lines of credit. This represents a 19% increase from the previous year.
Home equity lines of credit can be spent on a number of things , but are often used to retire higher-interest credit card debt. They also are usually a high dollar amount, the average in 2012 being $90,000. Many borrowers often have trouble repaying such a large loan with a variable interest rate.
Borrowers in trouble may find relief in debt settlement. Debt settlement done by a qualified debt settlement attorney can result in a principal balance reduction on a home equity line of credit. This means not only paying back less, but possibly paying back the loan on steady terms rather than varying monthly payments. Contact a qualified debt settlement attorney and learn more about debt settlement.