When it comes time to consolidate your debt, there is more than one kind of service available. It is wise to research each type of consolidation service so that you can choose the one that is best for you.

Home Equity Debt Consolidation Loans

Home equity consolidation loans use the equity in your home to give you the cash to pay off your high interest credit cards. The idea behind a home equity loan is that the interest on the mortgage will be substantially less than the interest on the credit cards. This is true initially, but if you choose to take a long time to pay off your mortgage, over the years, the amount of interest you will end up paying can total much more than the interest on your credit cards.

There is also the risk of losing your house, which must be carefully considered. A credit card company can