How to Reduce a Home Equity Line of Credit

Home equity lines of credit can be used like credit cards. Credit is available when you need it -- but the easy availability can lead to excessive spending. The Federal Trade Commission reports that you should use home equity lines only for really important purposes, such as college tuition for your children or emergency medical expenses for which you are uninsured.

Instructions

1

Review the credit limit on your home equity line by checking your statement after it arrives in the mail. Or access your statement from the lender's website.

2

Decide how much you want to lower your home equity credit line. The line cannot be lower than your current balance on the account.

3

Call the customer service number on your home equity line statement. Tell the representative that you have reviewed your account and wish to lower the credit line. Tell her your requested new credit line.

4

Follow-up in writing by sending a letter. Send it to the address for the customer service department as listed on your statement.

5

Check your next billing statement to confirm that your request was granted. Send a second letter if the credit line was not reduced.