The Home Equity Loan Trade-Off

A growing number of Americans are finding themselves with far more debt on their charge cards than they can handle. Taking out a low-interest home equity loan to consolidate high-interest credit card bills may seem like a good idea. But many borrowers are courting trouble.

At first glance, the simplicity of consolidating debt from different cards with various due dates to one lender at a lower interest rate may be appealing. An added benefit is the tax write-off on the loan's interest. ...