Avoid That Loan, Use Other Options

Almost every expert worth his name is now busy advising people on how it is the worst time to take money from your home as average sale prices are falling, interest rates are rising, and foreclosures are way out-of-control. But what do you do if you are deep in debt and want to pay off those loans before your situation gets worse? Fool.com reports:

That's why Bills.com co-CEO Andrew Housser says that it's best to exhaust other sources of financing for debt consolidation before tapping into home equity. "Using your house to pay off unsecured debt can be very risky. If you choose this route, make sure you leave yourself some financial breathing room, so that if something unexpected does happen, you will not risk losing your home."

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