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Consolidating debt with home equity: Pros and cons to consider

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It could be smart to consolidate your debt with a home equity loan or HELOC, but it’s important to know what you’re getting into first.

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There’s no question that credit card debt is expensive right now. Not only do credit cards typically come with high interest rates, but the recent Federal Reserve rate hikes have resulted in card rates climbing even higher. So if you’re carrying a balance on your credit cards, chances are that you’re paying a significant amount of interest on the charges.

And if you’re dealing with other types of debt as well, like personal loans or student loans, today’s elevated rate environment can make it costly to pay off what you owe. But the good news is that it doesn’t have to be. There are a few simple options for consolidating your debts, which could save you a lot of money in interest charges over time.

For example, if you’re a homeowner with equity in your home, you have the option of consolidating your debts into a home equity loan or a home equity line of credit (HELOC). And, doing so could provide some relief. However, as with any big financial move, there are a few important pros and cons to weigh before taking this route. 

Compare today’s top home equity loan options online now.

Consolidating debt with home equity: Pros and cons to consider

Here are some key factors to think about when deciding if a home equity loan is the right debt consolidation strategy.

Pros of consolidating debt with home equity

Let’s start with the potential benefits:

Lower interest rates 

The key advantage of using a home equity loan or HELOC to consolidate your debt is that home equity loans and HELOCs tend to have much lower interest rates than credit cards or personal loans. For example, right now, the average rate on a home equity loan is 8.59% (as of April 9, 2024) and the average HELOC rate is 9.04%. 

Both rates are substantially lower than the average credit card rate, which is hovering near 22% currently. So, by rolling your high-interest credit card debt into a lower-rate home equity loan or HELOC, you may be able to benefit from significant interest savings over the life of the loan. 

Find the best home equity loan rates available to you now.

Simplified payments 

A major benefit of debt consolidation is streamlining your payments. Rather than juggling multiple monthly payments to different creditors, by using your home’s equity to consolidate your credit card debt, you’ll have just one consolidated payment to make each month. This can make it a lot easier to budget and stay on top of your debt.

Flexibility with repayment terms 

Home equity loans come with more flexible repayment options compared to many other types of debt. When you choose this option, you can typically choose a loan term length that fits your budget and goals, whether that’s five years, 10 years or even longer. This allows you to find a payment schedule that works best for your financial situation.

For example, if you’re aiming to pay off the debt in a shorter timeframe, you could select a 5-year repayment term. This will result in higher monthly payments, but you’ll be debt-free sooner. Alternatively, if you want to keep your monthly costs lower, a 10- or 15-year loan term may be more suitable, though you’ll be in debt for a longer period.

This flexibility can be especially helpful if your financial situation is likely to change in the coming years, as you can adjust the repayment period accordingly. Just keep in mind that the longer the term, the more you’ll pay in total interest over the life of the loan.

Potential credit score improvement 

Consolidating multiple debts into a single home equity loan could help improve your credit score over time. By simplifying your payments and reducing your overall credit utilization, which is the amount of available credit you’re using, you may see a positive impact on your credit profile. That’s because credit scoring models look favorably upon consumers who have paid down debt and are utilizing less of their available credit.

And, having a home equity loan on your credit report can be seen as more favorable than having several maxed-out credit cards. Lenders also view home equity loans as a more responsible form of debt, which can further boost your score. Just be sure to make your payments on time each month to get the full benefit.

Cons of consolidating debt with home equity

Now, let’s look at some of the potential downsides:

Risk of foreclosure 

Perhaps the biggest risk of consolidating your debt with a home equity loan or HELOC is that by using your home as collateral, you’re putting your home at risk if you can’t afford the payments on your home equity loan. If you are unable to make your loan payments, it could potentially lead to foreclosure, which would be disastrous. This makes it crucial to carefully assess your ability to make the new, consolidated payment each month.

Longer repayment period 

Home equity loans typically have longer repayment terms than credit cards or personal loans. While this can make the monthly payments more manageable and offer some flexibility in terms of your repayment schedule, it also means you’ll be in debt for a longer period of time.

Closing costs 

Taking out a home equity loan or HELOC will come with closing costs, which can add up to hundreds or even thousands of dollars, depending on the lender fees, the amount you borrow and other factors. These upfront costs should be factored into your analysis, as the added expense could negate the potential interest savings in certain situations.

Reduced home equity

Every dollar you borrow against your home’s equity is a dollar that’s no longer available to tap into if you need it. This can impact your ability to borrow against your home’s equity in the future if you want to access funding for a small business you’re starting, pay for home renovations and repairs or cover another large expense.

Temptation to overspend

When you consolidate your debts into a single, lower-interest loan, it can be tempting to start racking up new credit card balances again. It’s crucial to break the cycle of overspending and stay disciplined with your new payment plan. Otherwise, you’ll be paying for both your new credit card debt and your consolidated debt each month, which could make it difficult financially.

The bottom line

Consolidating debt with a home equity loan is a major financial decision that requires careful thought and planning. But if done responsibly, it can be an effective way to simplify your payments, reduce interest costs and work toward becoming debt-free. As with any major financial decision, though, it’s important to weigh all of your options to determine the best course of action.



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Transcript: House Intelligence Committee chairman Rep. Mike Turner on “Face the Nation with Margaret Brennan,” Oct. 6, 2024

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The following is a transcript of an interview with House Intelligence Committee chairman Rep. Mike Turner, Republican of Ohio, on “Face the Nation with Margaret Brennan” that aired on Oct. 6, 2024.


MARGARET BRENNAN: We turn now to the Chairman of the House Intelligence Committee Ohio Republican, Mike Turner. Good to have you back with us. 

REP. MIKE TURNER: Thank you for having me on, Margaret.  

MARGARET BRENNAN: I want to get to the Middle East, but first on this issue of concern regarding political violence. Would you agree that language like what we just heard there is unhelpful? 

REP. TURNER: Well, I think it certainly characterizes the reality that Donald Trump has had two attempts on his life. And I do think that there is work that needs to be done, both by the administration and by Vice President Harris. The administration has come out and publicly stated- Matt Olsen from the Department of Justice on CBS News acknowledged that there is an active, ongoing threat from Iran to kill, actively plotting, to kill Donald Trump. You’ve had no statements from the administration towards Iran as to what that would be, which would be an act of war, and you don’t have any statement from Vice President Harris condemning this or even recognizing that there’s an active plot from a foreign nation to kill her opponent. I think there’s certainly a role for her to play and for the President to play in this, in both identifying that there are threats against Donald Trump that need to be acknowledged and responded to, to deter. I think all the candidates need to de-escalate, certainly in their language. 

MARGARET BRENNAN: But it is the Biden-Harris Justice Department, Matt Olsen works for them, who laid out those charges about the Iranian state. You don’t mean to imply here anything that would suggest Eric Trump’s allegations that Democrats are trying to kill him?

REP. TURNER: No, of course not. But I do think that Vice President Harris needs to actively state and acknowledge that her administration is saying a foreign power, which would be an act of war, is actively trying to kill her opponent. They have- this administration has made stronger statements– 

MARGARET BRENNAN: — okay, that’s different– 

REP. TURNER:– about Iran’s hacking activities than they have about the active plot to kill Donald Trump, which the administration acknowledges ongoing.

MARGARET BRENNAN: Well, because of the concern in regard to anti-government violence in this country and domestic violent extremists, the language specific to who is carrying this out, I think you would agree is important. 

REP. TURNER: I absolutely agree that there needs to be a toning down of rhetoric on both sides, but there has to be an acknowledgement, which has not happened, from Vice President Harris that there’s active plots from a foreign nation to kill her opponent. 

MARGARET BRENNAN: Do you want the FBI to release the results of its investigations prior to November 5, as Senator Rubio on Senate Intelligence has called for? 

REP. TURNER: Its investigations into the assassination attempt?

MARGARET BRENNAN: The two assassination attempts at this point, which are not substantiated to have any ties to the state of Iran or to political actors at this time. 

REP. TURNER: Well actually, it really can’t be said that they’re- saying that there have been no substantiated ties doesn’t mean that the investigation has concluded that there are no ties. And I want those investigations to- to come to a conclusion and determine whether or not either of these plots have any nexus or connection to the active plot the administration is saying that Iran is- is plotting in attempting to kill Donald Trump. Which, again, this administration needs to make clear to Iran that would be an act of war, and needs to have a very strong response from the administration 

MARGARET BRENNAN: Well, before the investigation is concluded, because it may not wind up before November the fifth, would you like the FBI to make public some of its findings, to rule out some of the conspiracy theories like we just heard from that stage that the political opposition is responsible? 

REP. TURNER: I don’t think they’d be able to do that. 

MARGARET BRENNAN: You don’t think they would be able to? 

REP. TURNER: I think they need to conclude and they need to get to truth. I don’t think they would be able to get to a point to release information that would conclusively indicate that either of those individuals acted completely alone. 

MARGARET BRENNAN: I want to turn to the Middle East. You’ve already taken us there and talking about Iran specifically, but where we are right now is nearly exactly a year from that terrorist attack on October the seventh. You called that a huge intelligence failure from the Israelis when it happened. Given all that has happened in recent weeks, I wonder what you assess about Israeli intelligence now. 

REP. TURNER: Well, the United States is working cooperatively with- with Israel in ways that we were not necessarily working prior to October 7 and- and I do think that- that Israel has changed its focus in its intelligence collecting and its assessments of its- of its intelligence. I mean, they certainly have risen to the occasion to understand that they’re in an active conflict and looking to ways- and to diminish the capabilities of their adversaries.

MARGARET BRENNAN: That nearest adversary at the moment appears to be the government of Iran. What should the 40,000 US troops that President Biden has deployed to the region be bracing for? Are you concerned that the United States will get drawn into this conflict if Israel carries out strikes on Iran. 

REP. TURNER: Right, so this is another area where the administration has not risen to the occasion. President Biden said that the nuclear program of Iran is off the table. It should not be a valid military target by Israel and, or, the United States– 

MARGARET BRENNAN:– Do you think it should be?– 

REP. TURNER: — Absolutely. In fact, the President himself, President Biden, has previously said that the United States would not allow Iran to get a nuclear weapon, and that he would use military action if necessary. His own Secretary of State has said, more than two weeks ago that Iran’s breakout time to become a nuclear state was two weeks. So you have Iran now actively– 

MARGARET BRENNAN: But it’s still not weaponizing. US intelligence has not said Iran has made the decision– 

REP. TURNER: — They have not publicly stated the- the current status of the program, other than what Blinken has said that the breakout time was- was two weeks. The- looking to proportionality, where Biden says that Israel can only respond in proportion, is as if this administration says Iran can send 200 missiles into Israel, and as long as we have missile defense that takes them out, we won’t look at Iran’s provocation there trying to kill and destroy individuals and towns in Israel. That should be the response. The understanding should be that Iran has moved beyond their proxies, Hamas, Hezbollah and Houthis to have direct attacks to Israel, and Israel needs to be able to defend itself, and Iran needs to pay a price. 

MARGARET BRENNAN: Well, the CENTCOM commander is currently in Israel, helping to advise some of the Israeli military. But just to be clear, the United States really only has the equipment that could take out the kind of underground facilities that are essential to the Iranian nuclear program. Are you advocating for the United States to be involved in offensive action? 

REP. TURNER: I believe it’s completely irresponsible for the President to say that it is off the table when he’s previously said it’s on the table. For him to give Iran the comfort that their actions of attacking directly, Iran, will not have any consequences for their nuclear weapons program is irresponsible.

MARGARET BRENNAN: So not a yes or a no. But- but I want to ask you about something that’s happening in your district, because you have a vested interest in what’s happening in Springfield, Ohio. This is the town that’s gotten so much attention in the past few weeks because the Haitian migrant population there. Going all the way back to February, you’ve been sending letters asking for federal help. You’ve brought some of the local officials here to Washington to advocate how to deal with the strain of the population growth. Have you gotten the federal help you’ve asked for- for Springfield, Ohio?

REP. TURNER: No. You know, Mayor Rue has done an excellent job in Springfield, both in advocating and in trying to pull the community together. He’s come here. We’ve taken him to the federal agencies that have the type of funding that should be released for what is a federally created problem. The Biden administration, through expanding the parole program, I believe illegally, brought 500,000 people here from Cuba, Venezuela, Haiti and others. And 15,000 to 20,000 people settled in Springfield, Ohio. But then the administration did something even more shocking last week. They indicated that they were not going to extend, but the temporary protected status that these individuals have, which could result in their going into an illegal status, and Springfield would have, these individuals would not have, in any direct federal support, and the community would get no additional assistance as to how to handle this almost 10% of the population of the of the city that now would fall into an illegal status as a result of the administration terminating their protected status. 

MARGARET BRENNAN: Which may happen in the coming year, so this could be an issue for the next president, whoever that President is. Congressman, thank you for explaining. Face the Nation will be back in a minute. Stay with us.



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Christopher Ciccone, artist and Madonna’s younger brother, dies at 63

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Christopher Ciccone, an artist and former dancer who was also singer Madonna’s younger brother, has died, his rep Brad Taylor confirmed to CBS News. He was 63.

He died from cancer on Oct. 4, surrounded by his husband, Ray Thacker, Taylor said in a statement.

Born on Nov. 22, 1960, in Pontiac, Michigan, Ciccone was an artist, interior decorator and designer, who began his career as a dancer. He joined the Le Group de La Palace Royale in Ottawa in 1980 before moving to New York two years later to support his older sister’s music career as a backup dancer.

LS.GlobeParty.3.0119.GF.b Madonna, winner of Golden Globe for Best Actress in Motion Picture Musical
Madonna, winner of the Golden Globe for Best Actress in Motion Picture Musical or Comedy with her brother Christopher Ciccone at the Disney party following the awards ceremony.

Gary Friedman/Los Angeles Times via Getty Images


As Madonna’s career grew, Ciccone became more involved — serving as the art director on his sister’s Blond Ambition World Tour in 1990 and as the tour director for her The Girlie Show in 1993. He also directed music videos for megastars Dolly Parton and Tony Bennett in the 1990s.

His role expanded away from music when Ciccone took on the role of interior designer within the homes his sister owned and occupied in New York, Miami, and Los Angeles.

In 2012, Ciccone released his own shoe line, The Ciccone Collection, at London Fashion Week.

He told CBS News at the time that his goal is to make the brand “accessible to everybody” and not too pricey.

“The great thing about doing shoes is that potentially everyone could have a pair. When you’re doing art, there’s only one,” Ciccone said

Ciccone, who was openly gay, claimed that his sister outed him during her 1991 interview with The Advocate.

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Christopher Ciccone attends OUT Magazine and Buick’s celebration of The OUT100 on November 29, 2012, in New York City.

Mike Coppola/Getty Images for OUT Magazine


Ciccone released a tell-all autobiography called “Life With My Sister Madonna,” leading to reports that the two had been estranged, but Ciccone told CBS News in 2012 that he was glad he wrote the book. 

“I don’t regret any of that,” he said. “I think because of that it sort of led me to this. It gave people an opportunity to think of me as a creative person, as an artist and not just as Madonna’s brother, which is a tag I’m going to wear forever,” Ciccone said in 2012. “But I’m hopeful that at some point it will be Christopher Ciccone first. It’s cool…I’m perfectly happy being what I am.”

The two eventually made up.

“Our relationship is fine as far as I’m concerned,” he told CBS News.

Ciccone and Thacker — a British-born actor — married in 2016.

Ciccone’s death comes fewer than two weeks after the death of his and Madonna’s stepmother, Joan Clare Ciccone, from cancer. His eldest brother Anthony died in 2023.



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One year after Oct. 7 attack, the toll on civilians remains high

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One year after Oct. 7 attack, the toll on civilians remains high – CBS News


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Since the Hamas terrorist attack on Israel, Israel has been waging a war on multiple fronts, and Gaza is now in near-total ruins with nearly 41,000 Palestinians dead, according to the Hamas-run Health Ministry. Imtiaz Tyab reports.

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