Should I Use a HELOC to Lower My Debt Payments?

If the interest rates for your other debts are high, as is usually the case for credit card debt, you can take advantage of the generally-lower HELOC rates that are secured by your equity in your home. Taking out a HELOC to pay off these debts will lower the cost of your payments, and can be a useful way to save money. However, you should take into account that your HELOC is secured by your home, and if you fail to make payments on your HELOC, the lender could seize your home.

Thus, while it can be very helpful to use a HELOC to lower your debt payments, you should only do so responsibly, when you are confident that you can continue to afford your HELOC payments.