Juggling many financial responsibilities at once requires a certain level of finesse and, occasionally, a number of financial products. Sometimes, particular financial situations may require a significant influx of cash, even for individuals with significant savings.
There are many different ways to use a personal line of credit including refinancing student loan debt as well as others. Using a personal line of credit allows a borrower to pay off student loans from multiple lenders. It is also a good option for situations where expenses may be ongoing, like covering home projects such as repairs or upgrades. Taking advantage of a personal line of credit to cover home expenses is beneficial because how much you ultimately borrow is up to you (up to the limit of the line of credit), and you only pay interest on the money that you actually use.
What are the pros and cons of a personal line of credit?
When considering whether a personal line of credit is the right product for you, it helps to consider some of the pros and cons.
- Flexible access to funds: With a personal line of credit, the borrower has access to the overall limit of their loan throughout the draw period, which often lasts a number of years.