Potential benefits
Mortgage debt usually costs less than credit cards, and one payment can be easier to manage.
Risks
- Unsecured debt becomes secured by your home.
- Stretching short-term debt over decades can increase total interest.
- Paid-off cards can be run up again.
A balanced look at using home equity to pay off other debts.
Do the math
Compare total interest on each option over the time you expect to repay.
Alternatives
Nonprofit credit counseling and debt management plans may help without using home equity.
Count every cost
Include closing costs, any change in your first mortgage terms and the total interest over the new term, not just the monthly payment change, when comparing a cash-out refinance with keeping your debts.
Watch the term reset
Starting a new long-term loan can mean paying interest for more years overall. If you consolidate, consider paying extra principal to finish on your original schedule.
Close or keep cards
Paying off cards frees available credit. Some people close them to avoid new balances, while others keep older accounts open for their credit history. Decide on a plan before closing.
Get help if needed
A nonprofit credit counselor or HUD-approved housing counselor can review your budget and alternatives.
Use the calculator
Enter your own balances and terms to compare scenarios.
General education only; confirm current rules with official sources and a licensed lender.
Sources
Sources checked 10/23/2026.