America’s biggest mortgage lender wants you to borrow against your home to pay off costly credit-card debt — but is that really a good idea?

At the same time, many Americans have a “comfortable equity cushion,” with net equity for mortgages reaching $17.9 trillion in 2026, according to Cotality’s Homeowner Equity Insights Report. That means the average homeowner has about $310,500 in home equity to leverage if need be. In some states, it’s much higher.

That’s why some Americans may be tempted to tap into their home equity to pay off their debt. And Rocket Mortgage — which led mortgage origination volume in 2025, slightly outpacing United Wholesale Mortgage — has designed an entire marketing campaign around that premise.

After all, home equity loans and home equity lines of credit (HELOCs) typically offer lower interest rates than credit cards, which averaged 23.80% in August 2026. But there are a few things to consider before trading unsecured debt (like credit card debt) for secured debt (like a home equity loan or HELOC) that uses your home as collateral.

Is home equity a solution to credit card debt?

Earlier in August, Rocket Mortgage debuted a national advertising campaign that positions home equity loans as a solution to high credit card debt.

Commercials showcase homeowners losing sleep at night or afraid to open their credit card bill, offering home equity loans as a solution to “wipe out your high-interest credit card debt and make a fresh start.” The campaign will continue through early 2027, according to the company.

“Rocket used to be in the credit card business but left the sector to focus on helping clients build wealth instead of financing debt,” Jonathan Mildenhall, chief marketing officer at Rocket Mortgage, said in a press release. “The truth of high-interest debt is something your credit card company doesn’t want you to hear: the longer it takes to pay it off, the more money they make.”

Now, Rocket Mortgage is positioning home equity as a way out.

As of Aug. 19, the average home equity loan interest rate was 8.10%, while the average HELOC rate was 7.31%, according to Bankrate’s latest survey of the nation’s largest home equity lenders.

“The equity they’ve built can break the cycle and potentially save them thousands of dollars,” said Mildenhall in the release.

The problem is, not all consumers are racking up credit card debt on impulse buys or discretionary spending like entertainment or vacations.

One survey by personal finance company Achieve found that more than half (53%) of American consumers are carrying a credit card balance to cover the rising cost of essential expenses. Of those, one in four (25%) have been carrying those debts for six months or longer.

The survey found that almost half (48%) of respondents “can’t realistically reduce spending on their bills and utilities, an indication that for struggling consumers, they’ve already cut back as much as they can.”

That’s why homeowners may want to proceed with caution when considering a home equity loan or HELOC as a way out. The loan options only shift your debt to a lower annual percentage rate, it doesn’t help you pay it off or necessarily help you keep up with the cost of living.

Should you tap your home equity?

There are two ways to tap into your home equity. A home equity loan provides you with a lump-sum payment, which you typically pay back between a period of five to 30 years. To qualify, you’ll need to meet credit score and debt-to-income ratio requirements.

Home equity loans typically have fixed rates, which can help you budget for monthly payments.

A HELOC, on the other hand, is a revolving line of credit, similar to a credit card. Your lender establishes a limit, called a maximum draw, which is the percentage of your home’s value that you can borrow from.

There’s also a draw period, which is the period of time in which you can access those funds. The draw period typically lasts 10 years and, during this time, most lenders only require you to make payments on the interest.

After the draw period ends, however, you’ll have to make monthly payments on the remaining balance — which could be significant if you’ve only been making minimum payments for 10 years. Most HELOCs have adjustable rates, so if interest rates rise, so do your payments.

Here’s the catch, though: unlike a credit card, a home equity loan or HELOC uses your home as collateral.

Defaulting on your credit card (which typically happens after six months of missed payments) isn’t ideal: your account could be closed and transferred to a collection agency, potentially leading to legal action, while also damaging your credit score.

But if you can’t repay a home equity loan or HELOC, you could lose your home.