A new nationwide survey of 1,000 U.S. homeowners—conducted by Unison—highlights a striking financial contradiction. While many Americans are burdened with high-interest credit card debt that shows no signs of slowing, they also hold substantial home equity that could be used to ease the pressure. The findings point to a turning point in how homeowners think about their finances. More are exploring home equity debt consolidation as a way to break free from the cycle of compounding interest—without taking on the heavy monthly obligations that come with traditional borrowing. High-Interest Credit Card Debt Is Rising Fast The survey reveals a challenging reality: 70.2% of homeowners have $10,000 or more in high-interest debt; 21.1% owe $25,000 or more 68% say their debt has grown over the past three years, with more than one in four reporting it has “increased significantly” 66.6% expect that debt will continue to rise over the next year Credit cards remain the primary driver. Over one-third of respondents carry a monthly balance, and nearly 30% are paying between 20% and 24.9% APR—well above most personal loan rates. Inflation and day-to-day living expenses are the top reasons homeowners find themselves deeper in debt, cited by 26% of respondents. For many, minimum payments and high interest charges have created a financial loop that is difficult to escape. Untapped Home Equity: A Missed Opportunity At the same time, homeowners are sitting on considerable, often unused, wealth in their properties: 92% report at least $50,000 in home equity 45% estimate their equity is between $100,000 and $300,000 Nearly 10% say they have over $400,000 Some have already accessed this equity—39% through a HELOC, 30% with a fixed-rate home equity loan, and 15% via a cash-out refinance in the past three years. Still, the majority have not taken steps to turn this equity into a solution for their high-interest debt. Debt Consolidation Tops the List of Reasons to Use Equity For those who have tapped into their home’s value, debt consolidation is one of the most common motivations. In fact, it tied with medical or education expenses and came second only to home improvements. By converting high-interest credit card balances into a lower-rate, home-secured option, homeowners can potentially cut both their monthly payments and total interest costs—making home equity debt consolidation an increasingly attractive alternative. Innovative Alternatives to Traditional Loans The survey also shows growing interest in flexible repayment structures designed to lower monthly costs: 33% would switch to a home-secured option with half the monthly cost, even if it meant sharing a portion of future appreciation 71% prefer sharing appreciation over continuing to pay triple-digit interest totals over time 91% are at least somewhat interested in a 10-year interest-only loan in exchange for sharing 5% of their home’s future appreciation These responses indicate that homeowners are open to creative solutions when it comes to replacing high-interest credit card debt with a more manageable repayment plan. Overcoming Hesitation About Home Equity Solutions The hesitation to use home equity isn’t due to lack of interest—it’s due to perceived risk. Nearly half of respondents cited foreclosure as a concern, while one-quarter worried about losing future price gains. High monthly payments have also been a dealbreaker for many considering traditional HELOCs or home equity loans. Greater transparency, education, and flexible options could help homeowners see home equity debt consolidation as a safer, smarter path forward. A Shift Toward Smarter Borrowing For many, home equity is no longer just a long-term safety net—it’s becoming an active tool in managing debt. As high-interest credit card alternatives gain traction, equity-based solutions that lower payments without sacrificing stability may become a first choice rather than a last resort. With the right financial products, homeowners could unlock the power of their equity to replace costly debt, improve cash flow, and create a stronger foundation for the future. Disclaimer: This survey, conducted in 2025 by Unison, reflects responses from 1,000 U.S. homeowners primarily over age 40 and may not represent the broader homeowner population. Results are based on self-reported data and should not be interpreted as financial advice or a guarantee of outcomes. Home equity products, including equity-sharing agreements, involve risks, such as potential loss of future home appreciation, foreclosure, or costs that may exceed those of traditional loans. The suitability of these products depends on individual financial circumstances, and terms, fees, and conditions vary. Consumers should carefully review all terms, consult with a financial advisor, and consider alternative borrowing options before deciding. For more information on Unison’s products, visit https://www.unison.com. Past trends in debt or home equity do not guarantee future results, and home values may fluctuate, impacting outcomes.