SALT LAKE CITY — If you're carrying high-interest credit card debt, using your home's equity may be a way to ease the burden.
New data from the Federal Reserve Bank of New York shows credit card balances hit $1.21 trillion in the second quarter of 2025. With the average interest rate on credit cards topping 21% and some climbing as high as 28%, paying down balances can feel overwhelming.
While national current home equity rates are averaging about 8%, this could be even lower in Utah. "Is it wise to borrow against yourself? It may be one of the best options you have," Dave Nellis with American First Credit Union said.
"We have lots of debt out there. It could be an auto loan, that could be credit card debt high interest rates. You could consolidate all of those loans into one loan payment and make that on a lower interest home equity line of credit," Nellis said.
That difference in interest rates can add up fast. Say you're carrying $50,000 in credit card debt at 22%. Refinancing with a home equity at 10% could save you roughly $6,000 a year in interest.
Financial experts caution: consolidating only works if you also tackle the habits that led to the debt in the first place. "And I would caution anybody to make sure you only borrow the amount of money you might need. You might need more later on," Nellis said.
