Best home equity loan to pay off debt: compare the full cost.

What makes a home equity loan the “best” choice for paying off debt?

The best home equity loan to pay off debt is not the one with the lowest advertised monthly payment. It is the offer that makes the full household budget more sustainable without placing an unacceptable risk on the home. That requires comparing actual written offers, including annual percentage rate (APR), financed fees, cash received, payment schedule, total interest and the consequences of missing payments. A good offer for a household with stable earnings and manageable mortgage expenses could be inappropriate for someone whose income varies sharply each month.

A home equity loan turns some of the ownership value in a property into an additional obligation secured by that property. It may replace several expensive unsecured balances with a single predictable installment, often through a fixed-rate second mortgage. But the old balances were not secured by the home. After consolidation, the new lender may have the right to foreclose if the borrower defaults. The financing decision must begin with that trade-off, not with a lender's marketing headline.

There is no universal winner and Monetalio has not independently verified a nationwide lender ranking or live interest-rate offers for this guide. Use the comparison framework below, request loan-specific disclosures and compare against non-home-secured alternatives before deciding.

Want to compare more than a second mortgage? Our debt consolidation loans for homeowners guide also evaluates unsecured loans, HELOCs, cash-out refinancing and nonprofit counseling without assuming the house should secure old debts.

If you are deciding whether to pledge a residence at all, read our debt consolidation loan versus home equity loan comparison. It compares the same debt payoff amount against APR, lifetime cost and whether the home becomes collateral.

If the offer would be used to pay unsecured accounts, follow our step-by-step guide to paying unsecured debt with home equity. It covers payoff amounts, net proceeds and the new mortgage lien that protects the lender.

Before using a comparison of lender quotes, read our home equity loan to pay off debt primer to understand collateral, affordability and the full transaction.

If you are comparing a credit card balance with a new second mortgage, read the credit card vs home equity loan explainer before ranking offers by APR alone.

If your report shows missed payments or collections, start with home equity loan to pay off debt with bad credit before interpreting any lender advertisement.

How a home equity loan works for debt consolidation

A home equity loan typically provides a lump sum that is repaid in monthly installments over an agreed term. Your home serves as collateral, often alongside an existing first mortgage. The first mortgage generally remains in place, so you may have two different monthly housing-debt payments. Paying off credit cards with the lump sum does not erase the economic obligation; it changes who is owed, how it is repaid and what assets are at risk.

For example, a homeowner may owe several cards and a personal loan totaling $35,000. The lender may approve a $35,000 second mortgage and disburse money to the borrower or directly to creditors, depending on the closing arrangements. The homeowner then needs to verify that each original lender posted the payoff and that any residual interest or pending charge is addressed. A creditor's app can show a zero balance today while later interest still posts during the next cycle.

An equity loan is not a free cash advance and an approval amount is not necessarily the net amount available to clear debts. Origination charges, appraisal costs, title charges, recording fees or other closing expenses can alter the cash flow. Ask for a clear disbursement worksheet before treating the proceeds as sufficient.

Card balances call for extra care with accrued interest and payment posting; see home equity loan to pay off credit cards before comparing actual lenders.

Start with the verified debt amount, not an estimate

Before applying, list the exact creditor, current payoff balance, APR, minimum payment, remaining term, whether the debt has collateral, and the expected payoff date. Credit-card balances change daily because interest accrues and new transactions settle. A consolidation plan based on a rounded number can leave small balances behind, which may then begin accruing interest again.

Use statements and the current creditor portal rather than relying on a credit report alone. Reports can lag and may not show every obligation. Ask for a payoff figure where the creditor offers one, note the expiration date, and check whether paying ahead of schedule creates any additional charge. With installment debts, compare the remaining interest that would actually accrue if you keep the loan rather than simply adding up every scheduled future payment.

Keep non-consolidated obligations in the budget, too: mortgage, property tax, homeowners insurance, HOA dues, utilities, child care, car expenses and ordinary living costs still exist. A newly quoted payment only helps if it fits next to those expenses with room for unpredictable bills.

Calculate how much equity you really have

Home equity is roughly the estimated market value of a property minus debts secured by it. Suppose a home may sell for $420,000, the existing mortgage balance is $260,000, and there are no other liens. Approximate equity would be $160,000. That does not mean the homeowner can necessarily borrow $160,000. A lender commonly imposes a combined loan-to-value limit, or CLTV, and separately evaluates income, existing debt obligations and credit history.

If a lender hypothetically permits a maximum combined 80% of the home's appraised value, total secured borrowing would be capped at $336,000. Subtracting the existing $260,000 mortgage leaves a theoretical $76,000 before other liens, fees or underwriting adjustments. This is an illustration of a formula, not a universal lending limit or an offer. Real policies, property types and state rules vary.

The lender's appraisal may differ from online estimates, and a declining home value can shrink available equity. Do not count on the future value of the property rising to make the loan safe. A homeowner needs sufficient equity and a realistic ability to pay the new debt.

The essential checklist for comparing lenders

For each offer request the same proposed principal, repayment term and property assumptions. Put the loan's APR, rate type, monthly principal-and-interest amount, origination and third-party fees, points, loan proceeds after fees, full repayment amount, and any early-payoff provisions side by side. Ask whether a low rate requires automatic payments, a specific credit score, relationship banking, or payment of discount points. A seemingly cheaper advertised offer can become more expensive if an incentive has conditions you cannot maintain.

Compare the amount of money required at closing. When fees are deducted from proceeds, a $35,000 face-amount loan may not generate $35,000 for payoff. When fees are rolled into principal, you pay interest on them over time. Also check whether the transaction requires insurance changes, a special appraisal, title work or other property documentation. If you cannot identify a cost, request a written explanation rather than assuming it is zero.

A trustworthy comparison comes from actual disclosures for your circumstances, not a web ranking assembled from national averages. If two offers use different loan sizes or terms, normalize them before drawing conclusions.

Understand interest rate versus APR

The note interest rate is the percentage used to calculate the interest charged on the outstanding loan balance. APR is a broader standardized measure of credit cost that generally incorporates certain finance charges, making it helpful for comparing similar loans. Still, an APR is not a substitute for reading the dollar amounts and payment schedule. Different disclosures may be calculated under different loan structures, and certain charges can be excluded from APR.

Ask whether the rate is fixed for the entire term, adjustable after an introductory period, or variable based on an index. A fixed-rate installment may provide a stable payment schedule; it does not make your property value stable or your income certain. If the loan can adjust, request the index, margin, adjustment dates, caps, floor, maximum possible payment and examples of payment changes.

Do not compare a fixed-rate home equity loan's APR mechanically with a HELOC advertisement. The FTC explains that a HELOC's advertised APR can be interest-only and may not capture the same fees as a loan's APR. Review the actual disclosures and the full cost of each structure.

Comparison table: which loan features matter most?

A comparison works only when it measures terms that affect actual repayment and risk. Advertised borrowing ranges and introductory promotional rates are preliminary screens, not evidence that a particular lender would approve your application. Use the following as a worksheet when you obtain offers, and mark anything the lender has not disclosed as “not provided” instead of estimating it yourself.

When comparing two legitimate offers, ask for the cash required at closing and net available to pay creditors. Those numbers are often more useful than the headline principal. The lowest APR does not automatically offset a long repayment term or the risk of tying a previously unsecured balance to your home.

Example: a lower payment can cost more over time

Consider an illustrative $35,000 balance and assume that the entire amount is financed at a fixed 9% rate for ten years with monthly amortization. The scheduled principal-and-interest payment is about $443.37. Total scheduled payments are approximately $53,204 and interest is about $18,204, excluding any closing costs. Changing the term to fifteen years at that same assumed rate drops the monthly payment to about $354.99, but total scheduled payments rise to approximately $63,899, of which about $28,899 is interest.

Neither rate is presented as a current lender offer. The model also assumes every payment is on time, the rate stays constant, and there are no fees. Your original credit card balances may not have had a fixed amortization schedule, so a direct comparison to a credit card's displayed minimum payment can be misleading. To compare fairly, model a practical repayment plan for the existing debts rather than pretending minimum-only payments are a fixed five-year loan.

The lesson is not that a ten-year term is always better than fifteen. It is that cash-flow relief and total cost are separate decisions. Paying less per month may preserve the emergency budget, but it can also mean paying interest for many more years.

Fees that can change the real savings

Home equity financing may involve an origination charge, underwriting or processing charges, appraisal, title search, recording, attorney or settlement services, and discount points. Their names and which party charges them vary. A lender may say “no closing costs” while building an expense into pricing or imposing conditions if the loan is paid off soon. Read how the offer defines “no cost,” and ask whether any charge could be recovered from you later.

A practical comparison uses a net-benefit calculation. First, total all financing charges that you would pay in connection with the new loan. Second, estimate the financing charges you would avoid by paying off the existing balances according to a credible schedule. Third, include any cost from giving up favorable terms on an old installment loan. Finally, weigh the risk of securing otherwise unsecured debt against the home. The lowest dollar cost does not necessarily answer the risk question.

If you expect to sell the home, refinance your first mortgage or pay down the second mortgage rapidly, request payoff calculations for those scenarios. A fee that seems small across fifteen years may matter greatly if you exit after eighteen months.

How loan terms affect payments and household resilience

Choose a term that is not merely the longest term a lender permits. A longer term generally lowers the scheduled payment for the same principal and rate but increases the number of interest-accruing months. A shorter term reduces the total interest in many fixed-rate scenarios yet may leave too little flexibility for repairs, health expenses, job changes or family needs. The appropriate term is one that the full household budget can maintain through ordinary disruptions.

Run two budgets: a normal month and a stressed month. For the stressed version, assume one meaningful expense rises or household income declines temporarily. Include both first and second mortgage payments, property-related bills, and remaining debts. Ask whether there is an emergency reserve and how many months it would last. This is more informative than relying on a lender's debt-to-income approval threshold alone.

A lender's underwriting is a separate legal and commercial decision. Approval does not mean a loan is the best choice for your household. You are responsible for deciding whether the additional property-secured obligation is tolerable.

Home equity loan versus HELOC for paying off debt

A home equity loan generally provides a specified amount at once, often at a fixed rate with scheduled payments. That structure may suit a known payoff total when the homeowner does not expect to borrow again. A home equity line of credit, or HELOC, instead establishes a revolving credit limit. Borrowers draw funds as needed during a draw period, subject to the agreement, and often face variable interest. Payments can change when the draw period ends or when rates move.

A HELOC may sound flexible, but flexibility can create its own debt-management problem. If a borrower uses the line to repay cards and then reuses available credit for new spending, total secured debt may grow. Some plans also require substantial principal repayment after the draw period. Read how the lender can freeze or reduce the line, when variable rates reset, and what happens at maturity.

A single-purpose debt payoff should be compared with a closed-end loan before assuming a revolving line is advantageous. Neither product is suitable simply because a rate advertisement appears below the current card APR.

Home equity loan versus cash-out refinance

A cash-out refinance replaces the current mortgage with a new, generally larger first mortgage and provides money beyond the amount needed to pay off the old loan. A home equity loan usually leaves the current first mortgage in place and creates another secured obligation. Which costs less depends heavily on the current first mortgage's interest rate and remaining term, the new loan terms, closing charges and the homeowner's time horizon.

Someone with an existing low fixed mortgage rate could lose that favorable rate if they replace the entire balance through cash-out refinancing. Someone whose first mortgage already has an unfavorable rate might find a refinance more competitive after a comprehensive comparison. Do not decide based only on the interest rate applied to the cash-out portion; a refinance reprices the whole existing mortgage balance.

Ask for the total payment difference, the new maturity date and the cumulative cost if you keep the property for five, ten or fifteen years. Compare how much equity remains after each transaction and the flexibility to refinance or sell later.

Home equity loan versus unsecured personal loan

An unsecured personal loan normally does not place a mortgage lien on the home. Rates can be higher, and approved amounts or terms may be smaller. However, it does not carry the same direct property-collateral consequence as a home equity loan. This distinction can outweigh a quoted rate advantage, especially for borrowers already concerned about making mortgage payments during hardship.

Compare offers with comparable net proceeds and expected repayment times. A shorter unsecured loan at a higher APR may have a lower total dollar cost than a long second mortgage, depending on repayment speed and fees. Conversely, the monthly payment on the shorter loan may be unaffordable. There is no universal answer without real numbers and a stress-tested budget.

If you cannot qualify for an unsecured option at a manageable cost, that is a reason to investigate the household debt situation carefully—not automatic proof that borrowing against a home is wise. A nonprofit credit counselor can help review options that do not require new secured borrowing.

Alternatives before putting the house on the line

A nonprofit credit counseling agency may review your budget, help prioritize debts and discuss a debt management plan for eligible unsecured obligations. Such arrangements can sometimes secure reduced rates or organized payments through creditors, but availability and costs vary. You can also ask card issuers directly about hardship programs or payment arrangements. A creditor may offer temporary relief without a second mortgage or appraisal.

Other approaches include paying higher-rate balances first, redirecting available cash after one debt is paid, or consolidating with an unsecured personal loan if pricing is reasonable. In severe hardship, legal advice about collection rights or bankruptcy may be appropriate. Those paths have important consequences and are not interchangeable, but the house should not become collateral before nonsecured options have been assessed.

Look carefully at companies advertising that they can eliminate debts immediately. Avoid advance-fee promises and claims of guaranteed savings. Start with a budget you can verify, and consider a qualified counselor rather than choosing an aggressive lending program while under pressure.

Eligibility: equity alone will not qualify you

Lenders generally evaluate property value, existing liens, income, employment or other income stability, credit history, debt-to-income measures and other underwriting factors. The available equity helps determine collateral coverage, but it is not a replacement for repayment capacity. Approval criteria differ by provider, loan size, property type and location. No public guide can determine eligibility from a house-price estimate alone.

A homeowner with a recent late payment may still be able to inquire, but offered pricing or approval odds may change. Someone with irregular freelance income should ask which financial statements and tax records are acceptable. A co-borrower or joint homeowner may need to participate in the application and closing depending on title ownership and lender rules. Do not assume one owner's signature is sufficient when the property is jointly owned.

Provide accurate information. Do not artificially inflate property value or hide other debts in the belief that a lower debt-to-income number will solve approval concerns. A responsible lender should document and evaluate the transaction rather than promising approval without review.

Documents to gather before getting an offer

Prepare recent mortgage statements, a list of all property liens, proof of homeowners insurance, current tax and property information, government identification, and evidence of income such as pay statements, W-2s, tax returns or business records as applicable. Gather the payoff details for debts you propose to consolidate. The exact package varies by lender and state, and additional records may be requested after underwriting begins.

If a property is held in a trust or owned with another person, ask what documents and signatures are required. If a first-mortgage payment has recently been delayed or a property-tax balance is outstanding, disclose it and seek clarification rather than assuming a new loan will solve it. A title search may identify liens that online home-value tools do not show.

Keep documents in a secure place and submit sensitive information only through a verified lender's approved channel. Monetalio does not require your Social Security number, bank password or property deed to read this guide. Beware of unsolicited callers requesting personal credentials to “release” a guaranteed loan.

How to shop for offers without relying on rankings

Ask more than one appropriately licensed or authorized lender, bank, or credit union for offers based on the same loan amount, property value and term. Tell each provider the intended use is paying off existing debt. Request written estimates and a clear description of rate type and fees. If a provider will not disclose the finance charges and payoff terms, that offer should not be compared as though the omitted items are zero.

When a lender provides standardized mortgage disclosures, read them carefully. The Loan Estimate and Closing Disclosure are designed to help compare key terms for many closed-end mortgages. Exact disclosure rules can depend on the credit product and transaction; HELOCs have different disclosure practices. Check that names, property address, loan amount, projected payments, closing costs and prepaid charges match what was discussed.

A “best lenders” list is not a substitute for personalized offers. Advertisements may show a rate available only to a small group of applicants, in certain states, or when the borrower meets specific equity and credit thresholds. Record the date and assumptions for every quotation.

Red flags in debt-consolidation loan marketing

Be wary of a guarantee of approval regardless of income, pressure to sign the same day, instructions to conceal information from another homeowner, requests to wire advance fees to an individual, or assertions that a low monthly payment proves savings. Those claims are inconsistent with a careful secured-loan decision. A legitimate lender should be able to explain the contract and allow a borrower to review disclosures.

Some marketing language suggests that an advisor will “take care of your credit cards” after the loan closes. Ask who is legally responsible for sending payoff funds and what evidence you receive. Verify the money actually reached each creditor; retain confirmations. If there is unused borrowed money after payoffs, decide deliberately whether to reduce the loan balance rather than treating it as extra spending capacity.

If something changes between application and closing—especially the rate, cash received or amount due—stop and request an updated explanation. A new document is not merely a formality when your home is the collateral.

What happens if you miss the home equity payment?

Failure to pay a secured home equity loan may lead to late charges, credit reporting, collection activity, acceleration under applicable contract terms, and potentially foreclosure. The lender's rights depend on the documents and state law, including lien priority and applicable procedures. Existing first-mortgage payments do not automatically cure a default on the second loan, and the second lien can affect future refinancing or sale of the home.

That is the central reason a home equity loan should not be described as a risk-free way to get rid of credit cards. The original unsecured creditors usually could not foreclose under a mortgage securing those particular balances. After conversion, the home is pledged to the debt consolidation lender. Any rate savings should be weighed against that change in collateral and family housing security.

If a payment problem becomes likely, contact the servicer early, review available assistance, and consult a HUD-approved housing counselor where appropriate. Do not wait for a foreclosure notice to find out what options might exist.

A practical closing and payoff checklist

Before signing, match the final principal to the amount being borrowed and verify whether fees are paid in cash or financed. Review the rate, term, payment due date, servicing information, property description, lien position and any prepayment conditions. Confirm the instructions for disbursing funds to each old creditor. Keep enough cash available for the first new loan payment and other ordinary expenses.

After closing, document every payoff with a dated confirmation. Log into each old account after processing and again after the next statement cycle to detect trailing interest or pending transactions. If an account should remain open, decide how to prevent rebuilding the balance. If a paid installment loan is secured by a separate asset, follow up on any relevant lien release or title paperwork.

Update your household budget to reflect the actual new monthly payment, rather than the advertised estimate, and set a calendar reminder for the first due date. Treat the consolidation as a change in liabilities requiring oversight for several weeks after closing—not as a task that ends when the lump sum arrives.

The three-business-day cancellation right: know its limits

For many non-purchase mortgage transactions secured by a principal dwelling, federal law provides a right of rescission that generally lasts three business days after the latest of specified triggering events. The CFPB explains that the timing depends on signing and receiving required disclosures and notices. The right does not automatically apply to every mortgage transaction or property and there are exceptions; the details matter.

If your transaction includes this right, read the cancellation notice, the address for sending it and the deadline. Follow the specified instructions if you intend to cancel. Do not assume a text message to a salesperson or simply refusing to make payments is the proper way to exercise a legal right. Ask a qualified professional when the transaction involves unusual property ownership or refinancing arrangements.

The point of the rescission discussion is to protect informed choice, not to suggest that borrowers can safely sign agreements without reading them. Carefully review terms before closing even when a later cancellation right might be available.

Tax consequences when proceeds pay credit cards

A critical U.S. tax distinction is the use of loan proceeds. The IRS states that interest on a home equity loan used to pay personal debts, including credit card balances, is not deductible as home mortgage interest under its stated rules. Interest that might qualify when proceeds are used to buy, build or substantially improve a qualified residence does not become deductible merely because a home is collateral.

Do not count potential tax deductions as part of claimed debt-consolidation savings without asking a qualified tax professional to review your particular situation. Mixed-use proceeds can create allocation and recordkeeping questions. A lender's marketing materials may emphasize property-related deductions, but the tax result is determined by the use of the borrowed funds and the applicable rules, not by the product's name.

Tax law can change and individual filing circumstances differ. Use current IRS guidance and, where needed, professional advice before including any tax benefit in your comparison worksheet.

How to compare total repayment fairly

Build two side-by-side schedules covering the same horizon. For the existing debts, estimate how much you can realistically pay each month, include interest at the applicable rate, and identify when balances would be eliminated. For a proposed equity loan, calculate principal and interest over the offered term, then add closing charges, financed fees and any other relevant expenses. If the home equity payment is lower but runs longer, compare both total cost and the effect on your emergency reserve.

Do not create a false comparison by pitting a credit card's minimum payment against a home equity loan's fully amortizing installment. One is typically a changing payment formula and the other is a contractual schedule. Instead ask: what would it cost to pay the current card debt off in five years, and what would it cost to finance the same principal over five, ten or fifteen years? This makes the trade-off visible.

Also note the value of flexibility. Cards and unsecured loans have their own risks, but switching to home-secured debt affects the legal consequences of missed payments and can complicate a future refinance or home sale.

What if you plan to sell your house soon?

Selling a home with a second mortgage generally requires addressing the lien at closing, typically from sale proceeds. If you plan to relocate within a few years, upfront costs have less time to be offset by potential interest savings. Request an estimated payoff balance at the planned sale date and ask for all origination and prepayment terms before proceeding.

Consider changes in property value and selling costs. An optimistic appreciation forecast should not be the sole basis for borrowing. If you are already near the lender's maximum combined loan-to-value ratio, a modest decline in market value can leave less flexibility than you expect. The ability to move, refinance or obtain a home improvement loan later may be affected by the additional secured debt.

If the household expects a major life change such as retirement, a career transition or a divorce, include that uncertainty in the affordability review. A loan that fits current income may be much harder to carry when circumstances change.

What borrowers with challenged credit should consider

Some homeowners seek equity loans because their credit cards have high APRs or their credit history has deteriorated. Collateral can affect lender underwriting, but there is no universal rule guaranteeing approval or an inexpensive rate. A recent missed mortgage payment, property tax delinquency, unstable income or low equity can be particularly important. Lender standards and available programs vary by state.

Compare secured borrowing with seeking help directly from creditors, a nonprofit counselor or an unsecured option before assuming the property must be pledged. Be cautious of brokers who advertise “no income checks” or who insist a large home value makes repayment ability irrelevant. If a loan's required monthly payment cannot be sustained, it is not made safe by a favorable appraisal.

A credit report error is worth disputing with the appropriate bureau, but do not promise yourself that a quick score change will secure a low-rate offer. Gather accurate information and review actual contracts rather than relying on generalized claims about credit tiers.

When a home equity loan is probably not a good fit

This approach deserves particular caution when income is unstable, the property already secures significant debt, the new payment would leave no room for emergency repairs, or the household repeatedly needs to borrow to cover necessities. A low scheduled payment can mask a structural deficit: if ordinary expenses exceed sustainable income, the next unexpected cost may lead to new cards on top of the second mortgage.

It is also a poor comparison when the borrower has not confirmed actual payoff balances, does not understand the term or fees, or cannot explain how the card balances will stay paid. If the only reason for using home equity is that an unsecured lender declined the application, seek an independent budget review and housing-counseling advice before converting the debts.

A lender approval and a commercially attractive headline are not substitutes for a personal risk limit. You may decide that avoiding a lien on the home is worth paying a higher unsecured APR—or that a carefully structured equity loan is manageable after reviewing alternatives. The analysis should be explicit either way.

How to find independent, trustworthy help

The CFPB advises homeowners considering equity borrowing to talk with a qualified credit counselor, especially when the goal is debt consolidation. A nonprofit agency can review a budget and available choices without automatically requiring a new mortgage. A HUD-approved housing counselor may help when the homeowner is worried about current mortgage payments or foreclosure risk. The relevant agency should explain its fees, services and limitations clearly.

Check credentials and complaint information for any intermediary. Do not assume that the person collecting your contact information is the lender or that a comparison platform controls underwriting decisions. Monetalio publishes educational information and may connect interested readers to third-party providers; it is not itself the bank that issues a secured loan.

Where legal rights, liens, marital property interests or tax questions are complicated, professional legal or tax advice may be appropriate. A careful process is not about filling out the most forms. It is about understanding the consequences before property-secured borrowing changes your financial position.

A step-by-step decision framework

Step 1: Validate the debts you plan to pay off and confirm creditor payoff instructions. Step 2: Estimate property equity conservatively and list every lien. Step 3: Make a sustainable post-consolidation budget with a stressed-income scenario. Step 4: Obtain comparable written offers with actual APR, fees, net proceeds and terms. Step 5: Compare the home-secured option against an unsecured loan, creditor hardship arrangements and counseling. Step 6: Read the closing disclosures and lien terms before signing. Step 7: Confirm each creditor receives the payoff, then monitor accounts for trailing interest.

The outcome may be “do not borrow against the home.” That is a legitimate result of a good comparison. It may also be a carefully selected fixed-rate loan with a term and payment that fit a stable budget. What matters is that the decision accounts for collateral risk, not just the possibility of replacing multiple due dates with one.

If you have an existing mortgage, remember the new loan generally adds another housing payment. Make sure both payments and all non-loan property costs appear in the household cash-flow worksheet before accepting an offer.

Frequently asked questions about using home equity to pay off debt