Overview

• Home equity loans and HELOCs often have lower interest rates than personal loans and credit cards.
• Financial experts advise considering interest rates, ending the debt cycle, and long-term effects before consolidating debt with home equity.
• Homeowners can use their home equity to consolidate high-interest debt.
• Home equity loans may be tax-deductible if used for IRS-approved home repairs and improvements.
• Homeowners should check their options and credit score before applying for a home equity loan.