Furthermore, the study found that the average American homeowners with at least 15% equity in their home are carrying $14,350 in debt, and that they have sufficient equity to refinance $12,549 of that—$2,941 in personal loans and $9,608 in revolving credit card debt.
Figure explained that if these homeowners consolidated that amount of debt using an 8% home equity line of credit (HELOC), they would pay $2,799 in interest over five years. So using a HELOC would save them $6,225.
If they instead applied the same monthly payments to their personal loan debt and credit card debt (assuming industry-typical interest rates of 12% and 18.2% respectively), the homeowner would pay $9,025 and take 2.5 years longer to pay off the debt, Figure explained.