This is a reason you might want to get a debt consolidation loan to pay to your credit cards and other such high interest loans. If you own a home, or if you have a mortgage, but you have enough equity to allow it, you can get this debt consolidation loan secured by home equity.

A debt consolidation home equity loan is a loan that is secured by your house, which means that the lender will have a lien on your property untill you finish paying this loan in full. By taking this loan, you will be able to save a little on your monthly payments, as the interest for secured loans tends to be much lower than the one for unsecured loans, such as credit cards. Another advantage money-wise is that the interest you will pay for the equity debt consolidation loan will be tax deductible, unless the total value of your first mortgage and your new debt consolidation loan does not exceed 100% of the value of the property.

However, there are risks about taking a debt consolidation using an equity loan: because it is secured against your property equity, it means that if you fail to pay for a number of months (which may happen if it happens that you lose your job and fail to find another quick enough), the creditor may ask for a repossession of the property.

Another risk is something that is just a matter of what you do: having a debt consolidation home equity loan might mean that you remain without any credit card debt and that you ould be tempted to use again the credit cards. This might prove an unwise idea, as it will lead you back to your original position, before you took the debt consolidation loan.