If you're dealing with five-figure credit card debt, you may have heard that your home equity could offer you a low-cost way to pay your debt off. Home equity loans and home equity lines of credit typically come with lower interest rates than credit cards which could lead to big savings in the long run.But just how big might those savings be?Say you have $20,000 in credit card debt.
Here's how much you'd save with a 15-year home equity loanThe average 15-year fixed home equity loan interest rate is currently 8.76%. At that rate, your monthly payments on a $20,000 15-year home equity loan would be $200.01. And, you would pay a total of $16,001.41 in interest over the life of the loan for a total payoff cost of $36,001.41. If you wanted to pay off a $20,000 credit card balance with the average 20.71% interest rate in 15 years, you would have to pay $361 per month .