Millennials' prioritization of leisure and entertainment may cost them in long term, reports MarketWatch's Amy Hoak.

Most financial planners caution home owners against using home-equity loans to fund short-term expenses, including vacations. Yet that is the most popular use of the money for the more than half of U.S. homeowners between the ages of 30 and 34 who have owned a home for three years or more and have taken out a home-equity loan, according to results of a recent Discover Home Equity Loans survey.

The reason that they're using home equity loans is simple.

Borrowing against a home can be a less expensive way to attain funds than credit cards. The average interest rate on a home-equity loan was 4.88% for the week ending Aug. 17, according to; the average rate on a home-equity line of credit was 4.75%.

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