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Consolidate Debt With a Home Equity Loan - If much of your wealth is tied up in your house, a home equity loan can enable you to use some of that capital to take care of your immediate needs, without having to sell your home. Those needs may include home improvements or medical bills. An increasingly popular strategy is to use a home equity loan to consolidate a number of high-interest-rate debts so they can be paid off at a lower rate.