Rocket Mortgage’s Home Equity Fix for Credit Card Debt Could Put Homes at Risk

Rocket Mortgage is pitching homeowners a way out of high-interest credit card debt: Put their home equity to work.

The national campaign, which kicked off August 3, encourages borrowers to consolidate their card balances with a home equity loan. The strategy may lower their interest costs, but it also raises the stakes by putting their homes at risk if they can’t repay the loan.

People who haven’t seen the ads yet will have plenty of opportunities to do so as the campaign will extend into early next year, the company said in a press release.

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Rocket is in a distinct position to help borrowers, says Jonathan Mildenhall, Chief Marketing Officer at Rocket.

“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,” Mildenhall said. “We want to tell America’s homeowners they have a way out. The equity they’ve built can break the cycle and potentially save them thousands of dollars.”

Borrowers who take out a home equity loan to pay down their credit card debt need to understand why that strategy could lead to problems.

Those who aren’t able to pay back funds they’ve borrowed through a home equity loan could see a lender foreclose on their home.

The Consumer Financial Protection Bureau advises people who are considering paying off debts via a home equity loan to consult with a credit counselor to better understand their options.

Rocket Mortgage’s new ad campaign delivers a timely message that is certainly relatable for many borrowers, coming at a time when credit card debt is hovering near a U.S. record.

According to the Federal Reserve Bank of New York, credit card balances have recently come down from all-time highs, but they still stood at $1.25 trillion at the end of 2026’s first quarter.

Buying an item today and not paying for it until a later date is one of the conveniences that credit cards offer. But at some point, cardholders will face consequences if they don’t pay off their credit card balances.

Rocket is framing its new advertising campaign around the anxiety that credit card debt is causing for many Americans. One of the company’s new ad spots claims that Americans are losing sleep over their credit card debt.

$0.00T$1.25T Total amount on U.S. credit card balances from Q1 2026

Meanwhile, some homeowners have built up a significant amount of equity in their homes. A recent report from real estate data and analytics company Cotality estimates that the average mortgaged borrower has about $310,500 in home equity.

Using home equity to pay down credit card debt stands to appeal to borrowers who don’t see a realistic path to paying off their card balances through minimum payments alone. After all, Rocket cites a 21% average interest rate across all credit cards. But as of late July 2026, home equity loan rates ranged from 5.76% to 10.75%.

Whether a borrower should pursue the approach Rocket Mortgage is promoting through its new advertising campaign comes down to their specific financial situation. Consumers should educate themselves and consult with financial experts, if necessary, to gain a deeper understanding of whether the strategy would suit them.

Rocket is planning to share stories later this year of homeowners who’ve turned to home equity to find a path away from high-interest debt. The company is also hosting an AMA on Reddit on August 14 to help consumers find answers to any questions they have about debt.