Are you burdened with a pile of credit card debt? Are you seeking options to reduce your debt? Run a search through the Internet, or seek some financial advice and you will realize that there are many ways you can achieve your objective. If you possess a home with equity, you can consider acquiring a home equity loan to refinance your credit card debt. This way, you no longer have to bear the high credit card interest rates, or consider bankruptcy to get your debts cleared.

Home equity loans, which function like a second mortgage, allow you to borrow based on the current value of your home. For instance, if the market value of your home is $300,000 while your outstanding mortgage is only at $200,000, you are entitled to a home equity loan of up to 80% of the additional equity. Some lenders even allow up to a 100% home equity loan. This is the power of owning property that appreciates in value over time.

Thus, with the cash-out that you have received out of the home equity loan, you can then utilize that to pay off your credit card debt. This does not mean that you are debt free though. You have just merely transferred your debt from high interest credit card debt, to a lower interest home equity loan. This way, it will be easier to plan out your finances and pay off your loan through monthly repayments without having to bear hefty interests.

The first thing that you need to determine is the current value of your home. This is easily accomplished by researching on other houses in your area and the price that they have recently been sold for. Other than that, you can engage a realtor and check with them on the current market value of your home. It