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So, can you save by using a home equity loan to pay off car debt. Maybe, depending on the interest rates and repayment terms of the loans. Auto loan interest rates depend on a few factors, with your creditworthiness playing a central role higher credit scores equal lower rates.

So, if you have excellent credit, it might make more financial sense to stick with an auto loan. But if your credit is average, the rates you get on auto and home equity loans will probably be more comparable.

Currently, average HELOC interest rate s are sitting just above 10 percent - higher than auto and home equity loans. Given all of the risks associated with using a home equity loan to pay off an auto loan, it is generally best to try other options before tapping into your home equity.

Cash-strapped homeowners falling behind on their car payments might look to home equity loans as a solution. The flexible terms and lower interest rates are appealing. Plus, the constantly depreciating value of the vehicle could make it not worth it to take out a 5- to year loan.