Homeowners can take advantage of a home equity loan or refinance option to get out of a debt spiral by using the money to consolidate consumer debts. Using a home equity loan means that you take out money against the equity you’ve paid into your home based on the difference between the amount you owe on the mortgage and the current value of the home.

For example, if you currently owe $200,000 on a home worth $300,000 at current market value, you’re eligible for $100,000 home equity loan. The two types of home equity loans include securing a second mortgage or getting a home equity line of credit.

The second mortgage means that you get a loan equal to or a portion of the equity you currently have in your home. You’ll continue paying the original mortgage payment, plus an additional monthly payment (plus interest) to pay back the home equity loan.

You can use the money from the loan to pay down your existing consumer debts – or for any other purpose. The money is yours to use however you see fit and the good news is that the interest on the second mortgage is normally 100% tax deductible up to $100,000.

Getting a home equity line of credit is also an option for using some fast money to pay down your consumer debts. A HELOC lets you borrow against the amount of equity you have in your home in increments rather than borrowing a set amount all at once.

It may not be the best option if you have a great amount of debt to pay. Refinancing your home (cash-out refinancing) is also an option when you need money to pay off nagging consumer debts.

Know that the new mortgage amount will exceed the balance on your current mortgage so that you can use the extra amount for paying off your debts and the main amount to pay off the old mortgage.

You’ll usually get a good rate for cash-out refinancing, but the deal is only available to those debtors who currently have a mortgage they’re paying off. If you have to choose between a cash-out refinancing option or a second mortgage (home equity loan), the second mortgage may be the best option if you have enough equity in your home to cover the debts you’ve incurred.

Remember that you’re responsible for both the second mortgage and the cash-out refinancing options. Use the money for how it is intended – to pay off consumer debts and get out of a debt spiral or you may find yourself in the same, or worse, predicament.