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

With many Americans feeling financially squeezed at the grocery store and at the gas pump, it's not surprising, perhaps, that they're increasingly using credit cards to cover the bills.

U.S. credit card balances rose to a total of $1.263 trillion in Q2 2026, up $1.242 trillion at the beginning of the year, according to the latest consumer debt data from the Federal Reserve Bank of New York .

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At the same time, many Americans have a "comfortable equity cushion," with net equity for mortgages reaching $17.9 trillion in 2026, according to Cotality's Homeowner Equity Insights Report . That means the average homeowner has about $310,500 in home equity to leverage if need be. In some states, it's much higher.

That's why some Americans may be tempted to tap into their home equity to pay off their debt. And Rocket Mortgage — which led mortgage origination volume in 2025 , slightly outpacing United Wholesale Mortgage — has designed an entire marketing campaign around that premise.

After all, home equity loans and home equity lines of credit (HELOCs) typically offer lower interest rates than credit cards, which averaged 23.80% in August 2026. But there are a few things to consider before trading unsecured debt (like credit card debt) for secured debt (like a home equity loan or HELOC) that uses your home as collateral.