Rocket Mortgage Pushes Home Equity Loans for $1.25 Trillion Card Debt

1 articles · Updated · CardRates.com · Aug 10

Rocket Mortgage began a national campaign on Aug. 3 urging homeowners to use home equity loans to consolidate credit card balances, with ads set to run into early 2027.
The pitch centers on lower borrowing costs: Rocket cites average credit card interest of 21%, versus late-July home equity loan rates of 5.76% to 10.75%.
That savings comes with a sharper risk because unsecured card debt becomes debt backed by the home, exposing borrowers to foreclosure if they cannot repay.
The campaign lands as U.S. credit card balances stood at $1.25 trillion at the end of the first quarter, while the average mortgaged homeowner held about $310,500 in equity.
The CFPB advises consumers considering the strategy to consult a credit counselor, underscoring that whether it works depends on each borrower's finances.