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

A home equity investment lets you tap into the equity you’ve built in your home without the added stress of monthly payments or interest. Like a HELOC, you’re unrestricted in your use of the funds, so you can put them toward paying off debt or other financial goals like renovating your home or funding a child’s education. But because Hometap is an investor, not a lender, you’re getting near-immediate cash in exchange for a share of your home’s future value.

Another plus is that Hometap has an effective period of 10 years, so you don’t need to worry about paying anything back until the end of the Investment; of course, if you’re able to before that time, you can do that, too. And since you won’t be dealing with any interest or monthly payments, you have the opportunity to get closer to your financial goals faster than you would with traditional options.