Home Equity loans are given to consumers to consolidate their debts. You get one monthly payment with, usually, a pretty good interest rate: between 9 – 12%. This may be a good option for someone who recently took a cut in pay, divorced, unemployed, or just overspent their income and the debt repayment became too great. However, the downside to this is that you are putting your house up as collateral—if you fail to pay this loan you may find yourself out of the streets.