The core math usually favors the HELOC; the right answer depends on what you value. Credit cards carry very high rates (illustratively, around 25%), so a $20,000 balance can cost roughly $5,000 a year, about $400 a month, just in interest to stand still. Move that balance to a HELOC at a much lower rate (say around 10% for illustration) and the annual interest drops to roughly $2,000, saving on the order of $200 a month. Our advice: take that monthly savings and throw it straight at the balance, so you actually pay the debt down instead of just servicing it more cheaply. HELOC versus a fixed consolidation loan comes down to rate versus structure. A HELOC is secured by your home, so it almost always prices lower than an unsecured consolidation loan (illustratively, around 10% secured versus maybe 15% unsecured). The tradeoffs: a HELOC rate is typically variable, and you are attaching the debt to your home, while a fixed consolidation loan keeps the debt off your property and locks the rate and payoff date. Some people happily take the lower HELOC rate; others prefer to keep former credit-card debt away from their house even if it costs a bit more. Either choice is valid if you make it with the tradeoffs in front of you, and both can help your credit as the card balances fall. Two things to know before converting: - Turning unsecured debt into secured debt changes your risk, and home equity can affect what is dischargeable if you ever end up in bankruptcy. If that is a realistic possibility, confirm how it would apply with a bankruptcy attorney first. - It can be tough to open a HELOC for a small amount, so a somewhat larger line than you strictly need often makes sense, as long as sitting credit will not tempt you to spend. The plan only works if the cards do not creep back up.