Higher living costs aren’t just impacting low-income households these days. Even moderate earners are struggling to make ends meet with everything from gas to groceries to utilities costing more.
The Consumer Price Index, which measures the cost of consumer goods, rose 7.9% in February. That’s the highest increase on record since 1982.
If you’re having difficulty paying bills due to rampant inflation, you may need to borrow money temporarily to keep up. You could run up a tab on your credit cards and pay it off over time, but if you go that route, you could end up not only hurting your credit score, but also racking up quite a bit of costly interest.
You could also apply for a personal loan, which will generally let you borrow at a lower interest rate than a credit card will. However, if you own a home, you may have a more cost-effective option.
IT’S NOT JUST GAS PRICES GOING UP: Inflation makes food and services more expensive, too
Is it time to tap your home equity?
Equity refers to the portion of your home that you own outright, and you can determine how much of it you have by taking your home’s market value and subtracting the balance you owe on your mortgage. Homeowners are currently sitting on a record level of home equity. If you’re in that boat, you might consider taking out a home equity loan.
It’s a common myth that if you take out a home equity loan, you need to use that money to improve your home. Like a personal loan, a home equity loan lets you borrow money for…
