Consider obtaining a Home Equity Loan (HEL) in order to pay off personal consumer borrowing.  The interest paid on the home equity loan is generally tax deductible on a loan not exceeding $100,000. 

If you are using a home equity loan to consolidate your debts and bills you could be making a mistake for the following reasons:  (1) Some of your bills may be interest-free, however, once you  obtain a HEL you start paying interest; (2) You lose the ability to choose which loans or bills you are going to pay in the event you run low on cash.  If things get tough you can probably negotiate payments with certain creditors.  If you have a HEL and you don't make the monthly payment, you stand to lose your home or at a minimum you will be subject to sizable late payment penalties; (3) You may end up stretching out the payments on your loans and bills over several more years because the HEL generally is for a much longer term--that means you'll pay a lot more interest and you may end up paying even more than if you didn't consolidate your loans and bills; (4) There is a tendency to run up more debts after obtaining a Home Equity Consolidation Loan because you think you just paid off all your debts. 

When you are considering a Home Equity Loan, analyze the following:

• Is the use of the loan proceeds appropriate? 
  
  
• What are the loan terms, interest rates, and fees?
  
  
• Will you have the ability to repay the loan?
  
  
• Is your plan for repayment consistent with the use of the proceeds?
  
  
• If you use the loan to consolidate your debts, will it result in a lower overall monthly payment?
  
  
• Are you keeping accurate records to document the use of the loan and repayment for tax purposes?