It makes sense to have a home equity loan to replace all your other expensive loans because the interest you save can be used to pay down your debt principal. However you should be financially disciplined and not run into more debts such as credit card or consumer loans. If you do so you will get deeper into debt but this time because your home equity loan is secured by the collateral of your home, you may end up loosing your home.

Lenders love home equity loan because they hold your home as security. So again make the lenders compete for your business and obtain the best rate and best deal.

So if your home has gone up in value over the years it means you have equity in your home. By all means use this equity in your home to obtain from the bank a home equity loan at a good rate, and repay all your expensive loans such as credit card loan, car loan, consumer loan, unsecured personal loan, unsecured line of credit etc. You will save enormously along the way. You will be happy to have taken this step