Homeowners have a tool that can assist in getting their financial life in order. Home equity loans or home equity lines of credit (HELOC) are real estate backed loans that often provide a low interest rate for borrowers. Rates on equity loans and lines of credit are lower than credit card rates because lenders have reduced risk. Since a borrower's home is tied to the property, the lender has a lower chance of complete loss. If the borrower stops making payments the lender takes the home.

Debt consolidation can be done in many ways. A great way for consumers to decide if debt consolidation using a HELOC or equity loan is the right idea is to speak with a non-profit credit counseling agency. There are hundreds of counseling firms, a good place to start looking is the National Federation For Credit Counseling (nfcc.org) database. In Arizona, some listed member agencies include:

• CCCS Southwest (Flagstaff)
• CCCS Southwest (Phoenix)
• GreenPath Debt Solutions (Tempe)

Any curious homeowner can check out current interest rates by searching online at Bankrate.com. Bankrate provides interest rates on all types of loans from thousands of lenders. Credit unions often offer the lowest interest rates around. Credit unions are member-only banks. To find a local credit union, consumers can search the Credit Union National Association (cuna.org).

For more information on debt consolidation visit cuna.org, www.debtadvice.org or www.bankrate.com.