HELOC for Debt Consolidation

Are your incoming bills a daily reminder of the overwhelming debt that seems insurmountable? Have you considered debt consolidation in order to simplify the bill-paying process, pay less in interest, and save your credit from collection activity? If so, taking out a HELOC, or Home Equity Line of Credit, for debt consolidation from Bellco Federal Credit Union can be the solution.

Information about Bellco Federal Credit Union

First formed as Bell Telephone Credit Union, Bellco Federal Credit Union is a member-owned, not-for-profit federal credit union. Since 1938, we have served Berks County with a range of specialized financial products and services. 

We offer checking and savings accounts, provide lending to members and provide all the modern conveniences that you’d expect from a modern banking institution. However, since we’re member-owned and operated and don’t have a profit motive, you’ll experience lower rates and better terms with a personalized touch. 

A HELOC Explanation

Bellco FCU provides an array of ways to finance your debt consolidation, one being a HELOC, or Home Equity Line of Credit. This line of credit is a revolving form of borrowing based upon your equity in your home. Equity is the difference between your home’s appraised value and the balance on your mortgage, and a HELOC is usually up to 80 or 90% of that equity. 

You can easily use it to consolidate debt because you can access the credit line as needed, spending and paying interest only on what you use. 

During the “draw period”, which is either 5 or 10 years, you can pay down as needed and continue to withdraw funds. As long as you are under the credit limit, you’ll be able to continue using the line of credit until the draw period comes to an end. 

When the draw period closes, repayment will start, and you’ll have a set period of time to repay what you have used. Bear in mind that your home secures the line of credit and is vulnerable should you fail to repay what you borrow. 

Key Features of Bellco FCU’s HELOC include:

  • Competitive adjustable interest rates

  • Borrowing usually limited to 85% of the equity

  • Use funds as needed

  • Repay with monthly installments during repayment period

  • Locally made decisions and processing

  • No restrictions on how the line of credit is used

  • Personalized and friendly service throughout the process

Bellco Federal Credit Union aims to improve the Berks County community by providing financial services and products for our owners/members. We make sure to provide the services needed in a manner that’s both respectful and helpful. 

Membership in Bellco Federal Credit Union

Those who are already members of Bellco FCU can apply for a HELOC for debt consolidation immediately. Others should consider joining! If you’re a student, resident, employee, or worshipper in Berks County, PA, open a primary savings account with a small deposit to begin the short process of establishing membership today.

Once you become a member of Bellco Federal Credit Union, the membership is lifelong. Even if you change jobs or move, you will remain a member. Your immediate family can also join. 

To open a HELOC for debt consolidation and start getting your financial house in order, turn to Bellco Federal Credit Union to learn more about the process. We’ll help you expedite your plan today!