Use a home equity line of credit wisely! If you get home equity to pay off loans, pay off the loans and don't use the money for a boat, a car or something frivolous. There are a few ways to truly get ahead of the game. First, calculate the savings you are realizing from consolidating your debt and pay as much as possible towards your debt consolidation loan. By paying extra money on your home equity line, you are reinvesting in your future and making sure that you don't lose when you sell your home by having a low return on investment. Use your credit cards for emergencies only. Don't buy food, extras or spontaneous purchases with your credit or with money from your consolidation loan. Finally, pay attention to your interest rates. Spend the least amount of money for debt as possible.