If you're a homeowner and need cash, a home equity loan could be an answer to your prayers. Who- Home equity loans are for a variety of people. They are of particular use to people with poor credit because they give you an opportunity to gain a fairly large sum of money secured against the equity in your home. What- Home equity loans can be used for a variety of purposes, some use them to consolidate debt. Generally, credit cards and short term loans carry a much higher rate of interest than a home equity loan, largely because your home equity loan is secured. Also, your monthly payments are significantly reduced. Your newly consolidated loans are tied to your mortgage. This spreads the payments over a much longer term therefore your payments go down. However, home equity loans have a variety of purposes. Some use them for home improvements or to raise cash for other purposes. Where- Most banks and credit institutions carry a wide range of lending options. You may wish to start at your current credit institution. If you have been a good customer in the past they will want to continue doing business with you. Do shop around. There may be another lending institution who can offer you a better deal. When- Home equity loans need to be weighed carefully; especially if you are using it for debt consolidation purposes. Remember, these loans are secured against your home and you risk losing it should you default. Also, with reduced payments, you'll find extra money at the end of the month. This can lead to more spending which can put you back to where you were before, in debt. If you're in need of cash and are a home owner, you may be able to qualify for a home equity loan, even if you have bad credit. A home equity loan can give you financial peace of mind with lower monthly payments. If used wisely, it can get you closer to financial freedom.