For tax years 2018 through 2025, no. Interest paid on a loan secured by your main home or second home may be deductible, subject to certain dollar limitations, only if the proceeds of the loan are used to buy, build, or substantially improve the taxpayer’s residence. As such, if the proceeds of the loan are used to pay off personal debts, such as credit card debts, you may not deduct the interest paid.

For tax years before 2018 and after 2025, yes. Interest paid on a home equity loan secured by your main residence or second home may be deductible, subject to certain dollar limitations, regardless of how the proceeds of the loan are used. For example, if you use a home equity loan to pay personal debts, such as credit cards debts, you may be able to deduct the interest paid.