Yes, home equity loans can be used to pay off high-interest credit card debt at a lower interest rate. To qualify for this type of loan, you’ll typically need to have at least 15% equity in your home. Calculate your home equity by subtracting the amount you owe on your mortgage subtracted from your home’s value.
When you open a home equity loan, you’re putting up your home as collateral to the lender. This can grant lower interest rates than with unsecured forms of debt, like personal loans and credit cards, but it also comes with a large amount of risk. If you don’t repay your home equity loan, you could lose your home.