This way you'll have one payment and one interest rate.It makes the debt much easier to manage and you can save money on interest.

If you’ve been wanting to renovate your house, using equity to pay for home improvements may be a wise choice for you.

You’ll be taking the equity out of your home and investing it back into your home by adding valuable renovations.

So you want to make smart decisions on how to use home equity so you can get the most out of your money.

With a home equity loan or home equity line of credit (HELOC) you can use your home’s equity to pay for major expenses, such as: Since equity loans and lines of credit can often carry lower interest rates, using home equity for debt consolidation might be a smart decision for you.

For example, if you have multiple debts at a number of interest rates, you can pay them all off with your low, fixed rate home equity loan, save on interest and pay less per month.

By Matthew Frankel, June 21, 2014 Home equity loans can be a great way to get much-needed cash at a reasonable interest rate, but they can also get you into trouble if used the wrong way.

Your best option is to consult an attorney or credit counselor about debt relief, including debt management or bankruptcy.

Options for smaller debt loads that don’t put your home at risk include: 0% balance transfer card: For people with good or excellent credit, issuers offer balance transfer credit cards with introductory no-interest periods from six months to two years.

Consider these pros and cons: Pros A homeowner with good credit is likely to have better options that don’t risk the house.