Family security financing vs personal bank loan to have debt consolidation When evaluating property guarantee loan versus unsecured loan having personal debt combination, take into account the dangers in it. Family equity finance give all the way down interest levels because they are safeguarded, but one defense is the domestic. Do you need to set you to definitely at risk to pay off your own handmade cards? Personal loans is unsecured, which means that your issues getting default try selections, not foreclosures. An average rate of interest into unsecured loans is merely below ten%. The latest average mastercard need for the usa is over 19%. This means that having fun with a consumer loan to possess debt consolidation reduction will help you save a significant amount of money, as opposed to risking your house.