If you have a lot of credit cards that have a high interest rates, one way to save money is by consolidating them. For most homeowners, the solution is using their home equity line of credit to consolidate those credit cards and loan. One big advantage in doing this is that the interest rates on the home equity loan is tax deductible. Another advantage is that you can probably get a lower monthly payment and use the savings to something else.

Nowadays, most homeowner loans are now tougher to get because of the current credit dilemma. The banks are getting tighter with the guidelines. Not only that you have to have a good credit but also the ability to pay the monthly payment.

And with the housing slump, the home equity for most homeowners have now dwindled making it tougher to borrow HELOC.