Even in the days of the tightest credit in 2008, HELOCs [ home equity line of credit ] and home equity loans were being made.
When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.
You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.
A consolidation makes sense only if you can lower your overall interest rate. Many people consolidate by taking out a home equity line loan or home equity line of credit (HELOC), refinancing a mortgage, or taking out a personal loan. They then use this cheaper debt to pay off more expensive debt, most frequently credit card loans, but also auto loans, private student loans, or other debt.
![Even in the days of the tightest credit in 2008, HELOCs [ home equity line of credit ] and home equity loans were being made.](http://cdn.quoteddaily.com/images/jean-chatzky/even-in-the-days-of-the-tightest-credit-in-2008-helocs--home-equity-line-of-credit--and-home.jpg)
