It is true that plugging into the equity in your home through refinancing your mortgage will wipe out credit card and student loan debt; but, it can create new problems if you keep on spending.  Before taking out an equity loan it is a good idea to take a long, hard look at why you are doing so.  If you are  trying to keep the creditors from breathing at the door or calling on the phone a home equity loan may not be the best solution.  If you are taking the equity loan out to pay credit card debt and other consumer debts, ask yourself “Are you comfortable converting short-term unsecured debt into long-term secured debt?”  You could be risking your home and not really coming to terms with the spending issues that put you in this situation — and that, at least in my eyes, could be a very bad thing.