Rocket Mortgage pushes home equity loans to wipe out credit card debt here's how that could backfire on homeowners Vawn Himmelsbach Sun, August 23, 2026 at 8:00 AM PDT 6 min read Geber86/Shutterstock With many Americans feeling financially squeezed at the grocery store and at the gas pump, it's not surprising, perhaps, that they're increasingly using credit cards to cover the bills. U.S. credit card balances rose to a total of $1.263 trillion in Q2 2026, up $1.242 trillion at the beginning of the year, according to the latest consumer debt data from the Federal Reserve Bank of New York . Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 6 ways to build wealth like a landlord without actually being one Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes At the same time, many Americans have a "comfortable equity cushion," with net equity for mortgages reaching $17.9 trillion in 2026, according to Cotality's Homeowner Equity Insights Report . That means the average homeowner has about $310,500 in home equity to leverage if need be. In some states, it's much higher. That's why some Americans may be tempted to tap into their home equity to pay off their debt. And Rocket Mortgage which led mortgage origination volume in 2025 , slightly outpacing United Wholesale Mortgage has designed an entire marketing campaign around that premise. After all, home equity loans and home equity lines of credit (HELOCs) typically offer lower interest rates than credit cards, which averaged 23.80% in August 2026. But there are a few things to consider before trading unsecured debt (like credit card debt) for secured debt (like a home equity loan or HELOC) that uses your home as collateral. Is home equity a solution to credit card debt? Earlier in August, Rocket Mortgage debuted a national advertising campaign that positions home equity loans as a solution to high credit card debt. Commercials showcase homeowners losing sleep at night or afraid to open their credit card bill, offering home equity loans as a solution to "wipe out your high-interest credit card debt and make a fresh start." The campaign will continue through early 2027, according to the company. "Rocket used to be in the credit card business but left the sector to focus on helping clients build wealth instead of financing debt," Jonathan Mildenhall, chief marketing officer at Rocket Mortgage, said in a press release. "The truth of high-interest debt is something your credit card company doesn't want you to hear: the longer it takes to pay it off, the more money they make." Story Continues Now, Rocket Mortgage is positioning home equity as a way out. As of Aug. 19, the average home equity loan interest rate was...
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