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Homeowners Turn to Equity Loans Amid Rising Debt

1/5/2026

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Story summary
  • Homeowners in the U.S. are increasingly turning to home equity loans to manage high-interest debt and inflation.
  • These loans typically offer fixed rates lower than those of personal loans and credit cards, providing access to significant funds.
  • For example, a $100,000 loan at 8.18% over 10 years results in monthly payments of about $1,222.
  • Home equity loans may also allow for tax deductions if used for qualifying home improvements.
  • Borrowers should be aware of risks, including potential foreclosure, and are encouraged to compare lenders for better terms.