Can I use my home equity to pay off credit card debt in Arizona?

Why credit card debt is so hard to pay off in 2026

The New York Fed's Center for Microeconomic Data reported U.S. credit card balances reached $1.263 trillion in Q2 2026, with roughly 6.9% of credit card balances at least 90 days past due. On top of that, the Federal Reserve's Consumer Credit report (G.19) showed an average APR of 22.15% on accounts charged interest in Q2 2026. When the average rate is above 20%, much of each payment can go toward interest rather than the balance.

How much equity can you borrow from your home?

Example: if your home could appraise for $400,000, you owe $225,000 on your mortgage, and your loan allows borrowing up to 75% of your home's value, then 75% of $400,000 is $300,000 — meaning roughly $75,000 in borrowing capacity. Some programs allow higher loan-to-value ratios depending on credit, property type, existing liens and underwriting approval.

The tradeoff you should weigh carefully

Home equity financing can make credit card debt feel more affordable by combining it into a lower-interest secured loan — but it's still debt, and it's now tied to your home. Before deciding, compare the total cost: what you currently owe, what you'll owe, and whether the lower payment is worth the longer repayment period.

My advice to Arizona homeowners

• List your balances, interest rates and monthly payments.
• Compare the total cost of consolidation — not just the payment.
• Decide whether to keep your first mortgage and use a HELOC, or replace it with a cash-out refinance.
• Have a plan so the credit cards don't fill back up.