The Risks of Using a HELOC to Consolidate Debt (And How to Avoid Them)

Why Talk About Risks? A home equity line of credit (HELOC) can be a powerful way to simplify debt repayment and save money on interest. By rolling multiple high-interest balances into one lower-interest loan, many homeowners free up cash and gain control over their finances. But like any financial tool, a HELOC isn’t without risks. Understanding those risks upfront ensures you use it wisely—and avoid turning a helpful solution into a bigger problem. Overspending After Debt Consolidation One