Some banks and credit unions automatically attach lines of credit to checking accounts for customers with good credit to use for overdraft protection.
Many people like having a line of credit available as a safety net in case of a financial emergency.
These loans are usually offered by financial institutions, such as banks and credit unions; there are also specialized debt-consolidation service companies.
There are two broad types of debt consolidation loans: secured and unsecured.
If you're thinking about using line of credit to pay off credit card debt then you need to first figure out if this is the most financially advantageous decision for your situation.
Although it can be a feasible idea for some people, this can be the beginning of a dangerous financial situation fraught with more debt than ever.
You might also consider consolidating all the credit card debt onto one credit card, as long as that card has a low interest rate.
Whatever method you choose, stick with it until you can proudly proclaim zero credit card debt.
Declining market values can develop into a negative equity situation for those homeowners who max out their lines of credit to pay off credit card debt.
Unsecured lines of credit offered by banks and other lenders are similar to credit cards, except the account holder is given a book of checks to use for purchases and to pay off debts.
Secured loans are backed by an asset of the borrower’s, such as a house or a car, that works as collateral for the loan.