Many consumers have some form of life insurance with a cash value option. This practice, however, should be considered only as one of your last results. Borrowing against these policies might be a good way to repay your debts. Essentially, you are borrowing your own money, but it is imperative that you pay it back. The interest rates are usually far less than the rates charged by credit card companies. The repayment period is usually set by the policy holder. Beware - if the balance has not been repaid in full before you pass away, the outstanding balance plus interest will be deducted from the face value of the policy. You will transfer the burden of your debt, in the form of a reduction in policy pay out, to your beneficiaries.
Be sure to contact us to discuss all of the options available to you before making a decision.