home equity loan, mortgage refinancingGetting mortgage refinancing is a little more difficult now than it was, but people who have equity in their homes who need a loan for something big should consider tapping into it and applying for a home equity loan. A home equity loan can be used to pay down credit cards, improve the energy efficiency of the home, or send a child to college. One of the best ways to use a home equity loan is for consolidating credit card debt. This kind of debt is so hard on the family budget that it makes sense to use the equity of the home to pay off expensive credit card debt.

The interest rates on credit card debt far exceed what the rates would be on a home equity loan, even for compromised borrowers. Just making the minimum monthly payments on credit cards is not the fastest way to get out of debt, and getting out of credit card debt is the ticket to being able to save money for the future or for other projects that will help you build your net worth. Financial experts all say that credit card debt is the first priority for everyone to pay off. It makes sense, too. Those fees and the interest carry can really add up, so if there is home equity but a lot of credit card debt to pay down, look into a home equity loan.