Swapping 24% credit card debt for 8% home equity debt is dramatic arithmetic. It is also a change in the nature of the debt, which is the part that deserves the most thought.
Compare total interest over the same repayment period, not the monthly payment. Stretching $40,000 of card debt across twenty years at a lower rate can still cost more in total.
Include closing costs in the comparison. On smaller balances they can wipe out a year of savings.
Credit card default damages your credit. Default on debt secured by your home can cost you the house. That is the whole trade.
Consolidation only works if the cards stay paid off. Many households refill them within two years and end up carrying both debts. Close or freeze the accounts as part of the plan.
Run your own figures through the calculator. No credit check, nothing saved unless you ask.
Calculate my equityUsually yes, because revolving utilization drops sharply once the cards are paid to zero.
It carries a higher rate but is unsecured, so your home is not at risk. For smaller balances it is often the better trade.
Part of The Homeowner's Guide to Home Equity.
Which renovations return their cost, how to size the loan, and how to avoid over-borrowing.
How home equity compares with federal and private student loans for funding education.
Using your equity as a down payment on a rental or vacation home: the math, the risk, the lender rules.