This is a question that is a difficult one to answer.  The so-called experts cannot seem to agree on the answer so the only place that you can look is to yourself and your own unique financial situation.  Determining if you should use a home equity loan to lower or eradicate your debt payments is determined by taking a long hard look at not only your financial situation but also at your spending habits.

Helping you to do this is a good HELOC or Home Equity Line of Credit calculator. If you input your information this calculator can help you figure out if you should use a home equity line of credit to lower your debt payments.  This tool can do this by calculating your monthly payment including average interest rate, payoff timeline and average annual tax savings with debt and HELOC.

This gives you an idea of where you would be if you go the home equity loan route.  Now the only problem with taking out a home equity loan is that you have to make sure that you are going to be disciplined to not run up your credit card and other debt again.  Many people have the best of intentions to not get buried in debt again but it can and does happen.

There are many other things to consider as well.  Perhaps the most important though is what will it cost you in the long run.  If it is financially worth it for you to use a home equity loan to lower your debt payments then this calculator will help you to discover that.  Once you have figured what is in your best interest you can act upon it.