31% of homeowners are clueless about using home equity to pay off credit card debt — but is that really a wise move?

While there are many possible ways to tackle credit card debt, a lot of homeowners seem to be unaware of a glaringly obvious strategy: Refinancing with a home equity loan.

A recent survey from the debt relief company Achieve found 31% of Americans didn’t even know this was possible. Gen Z was the most uninformed generation, with 60% saying they hadn’t heard of a home equity loan as a financial option.

That lack of knowledge could be costing homeowners a lot in unnecessary interest payments each year. When Achieve compared an average credit card interest rate of 22.15% with the nationwide average for home equity lines of credit (HELOCs) at 7.5%, they found average interest savings of $1,197 per year. Some states like Connecticut, New Jersey, and Maryland had even higher gaps of over $1,600.

But even after learning these facts and figures, a notable amount of homeowners said they felt skittish about putting their property on the line.

Why the hesitation with HELOCs?

​For most Americans, real estate holds a privileged status as the greatest generator of wealth. For over a decade, Gallup survey data showed Americans view real estate as the top long-term investment, 37% of Americans felt this way in 2025. That’s significantly higher than gold at 23% and stocks at 16%.

Real estate’s popular image among investors may partly explain why homeowners didn’t seem so keen on taking out a HELOC — even if it made more financial sense.

Achieve found that 42% of respondents viewed using home equity as collateral as “riskier” than holding a credit card balance with 21% interest. Achieve also found that 54% preferred to stay away from using their home equity despite higher interest payments.

When Achieve asked for reasons behind these responses, the most common was that homeowners “didn’t want more debt tied to their home” (46%). Another 32% said they believed in never borrowing against a home, while 28% fretted about foreclosure.

Considering that 60% of Americans with a credit card balance felt “trapped” in a debt cycle, per a Freedom Debt Relief September 2026 survey, not considering a HELOC speaks volumes about how Americans view their homes.

With the right guidance, however, more homeowners seem open to swapping credit card debt for a HELOC. About half (46%) of respondents told Achieve they’d “seriously consider” this plan if they saw the math on their potential savings. But even if the math made sense, 43% said they would want reassurance their home wouldn’t be in jeopardy.

Is a HELOC the right move for you?

​Like any debt financing strategy, using a HELOC isn’t a one-size-fits-all fix. As Kyle Enright, president of lending at Achieve told Moneywise, “Every consumer’s situation is different, so it’s important to consider a variety of factors when optimizing the best debt payoff strategy for your circumstances.”

Generally speaking, the ideal candidates for HELOCs in Enright’s mind are homeowners who have steady income but are losing ground to credit card interest rates. They may be making payments every month, but balances seem to barely drop.

“The opportunity is especially compelling for someone with a low interest rate on their existing mortgage,” he said. “A separate home equity loan or HELOC lets them address expensive credit card debt without refinancing their entire mortgage at market interest rates that are higher than their existing loan.”