Is taking out a home equity line of credit (HELOC) a smart way to pay off debt?

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A home equity line of credit (HELOC) gives you access to cash through a portion of the equity you’ve built in your home. The amount of credit is determined by a combination of your home’s value and your remaining mortgage balance. There can be several advantages to HELOCs, including low-interest rates, tax deductions, and a flexible spending amount. Since a HELOC is considered a revolving line of credit, once you pay back the initial amount you borrow, you’re able to take out more money as soon as you’re re-approved. This differs from home equity loans or cash-out refinances that provide you with a lump sum of cash.