Rocket Mortgage pushes home equity loans to wipe out credit card debt — here's how that could backfire on homeowners

Many Americans are turning to credit cards to cover bills due to rising costs, with U.S. credit card balances hitting $1.263 trillion in Q2 2026, according to Federal Reserve data. However, home equity loans and HELOCs typically offer lower interest rates than credit cards, which averaged 23.80% in August 2026. Rocket Mortgage recently launched a marketing campaign targeting homeowners who may be considering using their home equity to pay off high-interest credit card debt.

The average home equity loan interest rate was 8.10% as of August, while the average HELOC rate was 7.31%. While home equity loans and HELOCs can help homeowners reduce their overall debt burden, they also carry risks. If a borrower defaults on a home equity loan or HELOC, they could lose their home. Thus, homeowners should carefully consider their ability to repay the loan before pursuing this option.