A home equity loan may be the solution to your looming debt problems. You can obtain an second mortgage loan, even if you have bad credit. With the loan you can consolidate all of your debt into one easy to make payment.Before you can obtain an equity home loan, make sure you have equity in your home; you must owe less on your home than what it is currently valued at. The difference between your home’s current assessed value and your balance is the amount of equity you have in your home.AdvantagesHome equity loans are a great way to consolidate your other debt, because you can often obtain a much lower interest rate than with traditional loans or credit cards. By consolidating all of your debt into an equity loan, you will pay off your debt quicker and will actually save money in the long run from a much lower interest rate.If your monthly payments are too much for you to pay this loan loan can also help you. Often times, when you consolidate your bills into an equity loan, you will actually be able to pay out less money each month and you don’t have to worry about falling behind on your payments.DisadvantagesUsing a home equity mortgage loan to consolidate your bills is not without risks. With the loan, you are using your home as collateral. This means if you cannot make the monthly payments or cannot continue paying off the loan, you could potentially lose your home.With that said, before obtaining an equity mortgage loan to consolidate your debt, you will need to closely evaluate the situation and make sure you will be able to pay off the loan with no problems.Finding Reputable Home Equity LendersYou can obtain a second mortgage loan through a variety of different lenders. You can check with your current mortgage company to see what type of terms they can offer you. Also remember to check with online companies as well as other local financial institutions.When choosing a company, only choose a reputable one. Make sure that you work with a lender that offers you the best terms and rates available. As some institutions will charge a fee should you choose to pay off the loan early, be sure you choose one that will not charge you if you plan to do so.Debt consolidation can often be a great way to easily lower your monthly payments as well as quickly improve your credit score. And a home equity loan is one of excellent sources to help you consolidate your debt. If you do your homework, you could be on the right path to paying off your debt.