Debt consolidation can simplify payments, but moving unsecured debt to a mortgage or HELOC changes what is at risk. A lower payment can result from stretching repayment over more years. The home may secure debt that previously did not put it directly at risk.
Payment relief is useful, but it should not hide a longer or riskier obligation.
Inventory the existing debts
For each balance, record the rate, minimum payment, payoff date, and any promotional expiration. Separate debts you expect to repay soon from debts likely to remain for years. A single blended rate can conceal important differences.
Compare equal repayment horizons
Review new fees and the proposed term. Estimate the payment needed to retire the consolidated balance over the original intended period, not just the minimum payment on a much longer loan. For variable-rate debt, include a higher-rate scenario.
Plan for the behavior after closing
Paying off a card does not prevent a new balance from forming. Create a spending and repayment plan that addresses why the balances accumulated. Consider nonprofit credit counseling if you need help evaluating alternatives.
Your action list
0 of 6Progress is saved in this browser. No account needed.
Keep learning from the source
Official resources for context and current requirements. Links do not imply endorsement.
CFPB: Home equity lines of credit booklet ↗HUD: Housing counseling ↗General education, not an approval or personalized recommendation. Loan terms and eligibility vary. Our editorial standards.