I Have $30,000 in Credit Card Debt and $69,000 Left on My Mortgage. Is a Home Equity Loan a Mistake?

Benzinga_recent_news05:31

Quick Summary The numbers initially look manageable. A homeowner with about $69,000 remaining on their mortgage, a property worth at least $175,000, and a 715 credit score is considering a home equity...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2605843565?lang=en_US&edition=fundamental","thumbnail":"https://cdn.benzinga.com/files/images/story/2026/01/21/Notepad-With-Sign-Home-Equity-And-Cash-.jpeg?optimize=medium&dpr=2&auto=webp&width=240","is_english":true,"pubTime":"2026-01-22 05:31","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2605843565","market":"sh","top_or_hot":-1,"title":"I Have $30,000 in Credit Card Debt and $69,000 Left on My Mortgage. Is a Home Equity Loan a Mistake?","media":"Benzinga_recent_news","content":"<div>\n<p>Quick Summary\nThe numbers initially look manageable. A homeowner with about $69,000 remaining on their mortgage, a property worth at least $175,000, and a 715 credit score is considering a home equity...</p>\n\n<a href=\"https://www.benzinga.com/news/topics/26/01/50054916/i-have-30000-in-credit-card-debt-and-69000-left-on-my-mortgage-is-a-home-equity-loan-a-mistake\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>I Have $30,000 in Credit Card Debt and $69,000 Left on My Mortgage. Is a Home Equity Loan a Mistake?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nI Have $30,000 in Credit Card Debt and $69,000 Left on My Mortgage. Is a Home Equity Loan a Mistake?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 05:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/topics/26/01/50054916/i-have-30000-in-credit-card-debt-and-69000-left-on-my-mortgage-is-a-home-equity-loan-a-mistake><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Quick Summary\nThe numbers initially look manageable. A homeowner with about $69,000 remaining on their mortgage, a property worth at least $175,000, and a 715 credit score is considering a home equity...</p>\n\n<a href=\"https://www.benzinga.com/news/topics/26/01/50054916/i-have-30000-in-credit-card-debt-and-69000-left-on-my-mortgage-is-a-home-equity-loan-a-mistake\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://www.benzinga.com/news/topics/26/01/50054916/i-have-30000-in-credit-card-debt-and-69000-left-on-my-mortgage-is-a-home-equity-loan-a-mistake","article_id":"2605843565","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/01/21/Notepad-With-Sign-Home-Equity-And-Cash-.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/news/topics/26/01/50054916/i-have-30000-in-credit-card-debt-and-69000-left-on-my-mortgage-is-a-home-equity-loan-a-mistake","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605843565","pubTimestamp":1769031060,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"The numbers initially look manageable. A homeowner with about $69,000 remaining on their mortgage, a property worth at least $175,000, and a 715 credit score is considering a home equity loan to deal with roughly $30,000 in credit card debt.Their idea was to replace high-interest credit cards with lower-cost debt, free up monthly cash flow, and make some home improvements before selling the house later this year.On paper, it sounds like progress. However, the question isn't whether a home equity loan can work. It's whether using home equity to solve unsecured debt actually improves the situation, or makes it riskier.Credit card debt is expensive, but it's also contained. Miss a payment and your credit score suffers, but your home isn't directly on the line.In this case, the homeowner estimates they could borrow $50,000, enough to wipe out the credit cards and fund renovations. With a property value around $175,000 and a mortgage balance of $69,000, there appears to be enough equity to ","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","HBCP":"Home Bancorp Inc","BK4585":"ETF&股票定投概念","EQR":"资产住宅公司","BK4195":"互助储蓄与抵押信贷金融服务","BK4215":"住宅房地产投资信托","BK4211":"区域性银行"},"translate_title":"我有30,000美元的信用卡债务，还有69,000美元的抵押贷款。房屋净值贷款是错误吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EQR":1.5,"HBCP":1.5},"content_text":"Quick Summary\nThe numbers initially look manageable. A homeowner with about $69,000 remaining on their mortgage, a property worth at least $175,000, and a 715 credit score is considering a home equity loan to deal with roughly $30,000 in credit card debt. \nTheir idea was to replace high-interest credit cards with lower-cost debt, free up monthly cash flow, and make some home improvements before selling the house later this year.\nOn paper, it sounds like progress. However, the question isn't whether a home equity loan can work. It's whether using home equity to solve unsecured debt actually improves the situation, or makes it riskier.\nCredit card debt is expensive, but it's also contained. Miss a payment and your credit score suffers, but your home isn't directly on the line.\nHome equity loans change that equation.\nIn this case, the homeowner estimates they could borrow $50,000, enough to wipe out the credit cards and fund renovations. With a property value around $175,000 and a mortgage balance of $69,000, there appears to be enough equity to qualify, assuming typical loan-to-value limits.\nThe appeal is obvious as credit cards charging north of 20% interest can feel impossible to outrun. Even aggressive payments often go mostly toward interest, not principal. Replacing that with a fixed-rate loan tied to the house can lower monthly payments and create breathing room.\nThat's the upside. The downside is that this move converts unsecured, flexible debt into secured, inflexible debt. If something goes wrong (job loss, medical issue, delayed home sale) the consequences are more severe.\nThat's why this decision depends less on the interest rate and more on what happens next.\nThere are scenarios where using home equity to consolidate debt is rational.\nIf spending habits are already under control, income is stable, and the plan is clearly defined, a home equity loan can reduce interest costs without reopening the door to new debt. In this case, the homeowner says they've frozen their cards, stopped adding balances, and are focused on getting ahead rather than treading water.\nThat matters. Another factor is structure. Unlike a cash-out refinance, a home equity loan allows borrowers to keep their existing mortgage and interest rate intact. That's especially important for homeowners who locked in low rates in prior years and don't want to reset their entire loan.\nThis is where a product like a Rocket Mortgage Home Equity Loan can fit. According to company data, Rocket Mortgage clients who consolidate debt using home equity save an average of $535 per month. It offers a fixed interest rate and a separate payment that does not disturb an existing mortgage, with lump-sum payouts starting at $45,000.\nImportantly, this type of structure avoids refinancing the entire home just to deal with revolving debt.\nThe biggest mistake with home equity borrowing isn't the loan itself. It's what happens after.\nUsing equity to pay off credit cards only works if the cards stay paid off. Otherwise, homeowners end up with both the home equity loan and new card balances, effectively doubling the debt.\nTiming also matters. This homeowner hopes to sell sometime this year, which means any home equity loan taken today must either be paid down aggressively or comfortably absorbed at sale without eroding proceeds. Renovations funded by the loan need to meaningfully improve resale value, not just comfort.\nIf the loan stretches out spending without increasing equity, the math deteriorates quickly.\nThat's why this move should be modeled, not guessed. Many homeowners focus on whether they qualify for a home equity loan, not whether it improves their long-term position.\nThis is where working with a fiduciary advisor can make the difference. Platforms like SmartAsset match users with financial advisors who can model multiple paths without pushing a specific product. That kind of side-by-side analysis helps separate temporary relief from real progress, and you can be matched with an advisor for free.\nIn cases like this, it can be a tool (one that lowers interest costs and stabilizes cash flow) if it's paired with disciplined spending, realistic renovation expectations, and a clear exit plan before selling.\nFor homeowners considering this path, the right move is not rushing into a loan, nor dismissing the idea outright. It's running the numbers carefully, understanding what's being risked, and choosing the structure that solves the problem without creating a bigger one later.\nImage: Shutterstock","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.0","shortVersion":"4.36.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2605843565","isCrawlerRequest":true}