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High-interest debt can feel like a heavy weight that never goes away. An Equity Sharing Agreement, often compared to Home Equity Investments (HEIs), may help you use the value in your home to clear those balances without a monthly payment.
Instead of monthly loan payments, you share in the future change of your home’s value, paid when you sell your home, buy out the agreement, or after 30 years pass.
The Challenge: Growing Credit Card Balances
Meet Maria. Maria has owned her home for eight years and takes great pride in it. However, over the last few years, several small repairs and life expenses ended up on her credit cards. Between three different cards, Maria owed $45,000. Even though she made her payments on time, the high interest rates meant her balances barely moved. She felt like she was running in place and needed a way to reset her finances.
Why a Debt Consolidation Loan Didn't Fit
Maria first looked at a debt consolidation loan. The bank offered her a loan to pay off the cards, but it came with a high monthly payment and a five-year term. Maria realized that while the interest rate was lower than her cards, the new monthly bill would make her budget very tight. She also looked at a home equity loan, but she didn't want to risk having two monthly mortgage-style payments. She needed a solution that would give her $45,000 to clear her debt without creating a new monthly bill.
The Solution: A Fresh Start with Unison
Maria decided to use an Equity Sharing Agreement. Unison provided her with $45,000 upfront. She used this money to pay off all three credit cards immediately. In exchange, Unison will share in a portion of her home’s change in value in the future.
- Lower Monthly Costs: By paying off her cards, Maria suddenly had hundreds of extra dollars in her pocket every month that used to go toward interest.
- No New Bills: Unlike a loan, our agreement does not require Maria to make monthly payments to us.
- Simple Finances: Maria went from managing multiple high-interest debts to focusing on just her primary mortgage.
The Outcome: Financial Freedom
Maria now has the breathing room she needs to save for the future. She is no longer stressed by the "minimum payment" cycle, and she did not have to take on a new monthly debt to get there.
As Maria said: "I felt trapped by my credit card interest. Partnering with Unison allowed me to use $45,000 of my home's equity to wipe the slate clean. Now, I don't have those extra monthly bills, and I can finally start saving for my retirement again."
Using an Equity Sharing Agreement can be a powerful way to manage your debt. We want to help you find the financial flexibility you deserve so you can enjoy your home and your life.