Home equity lines or loans often are advertised as a quick and easy way to get out of debt. People will tell you that by leveraging your home’s value, you can get money to pay off other bills and a tax break, too. But borrowing against your house can backfire. The biggest risk is that you could lose your home if you aren’t able to pay back the loan.

There are two types of home equity lending, loans and lines of credit:

A home-equity loan is generally the best choice when you know exactly how much your purchase is likely to cost and you need several years to pay it off. A major home-improvement project, for example, might be a good candidate for a home-equity loan.

A line of credit may be a better option for shorter-term borrowing, or when you want to be able to tap your home equity to cover emergencies.

With either type of borrowing, you're pledging your home as collateral. If you fall behind on your payments, the lender may foreclose and take your house.