Rocket Mortgage Urges Homeowners to Use Equity for Debt

Rocket Mortgage launched a marketing campaign urging American homeowners to utilize home-equity loans to consolidate record-high credit card debt. The company positions second mortgages as a more affordable alternative to credit cards, contrasting average home equity loan rates of just over 8% against average credit card interest rates of 21%.

Chief Marketing Officer Jonathan Mildenhall stated that the company aims to serve as a personal finance partner to help clients build wealth instead of financing debt. He noted that the equity homeowners have built can break the debt cycle and potentially save them thousands of dollars.

The initiative follows data showing U.S. credit card debt reached $1.277 trillion by the end of last year, while homeowners hold approximately $17.6 trillion in equity. To support the campaign, Rocket Mortgage plans to release research on the impacts of high-interest debt and host a Reddit Ask Me Anything session later this month.