Hello, my parents currently own a 3 flat apartment and I am renting the 2nd floor from them. I have unsecured student loans and other unsecured debt that adds up to about $32,000. I was wondering if my parents wanted to help me out by paying off my debt against the house, ( with me paying them back of course) what would be the smartest way of handling this? Should they do a home equity line of credit and give me the money as a gift? Should they refinance the whole amount and add me as a co-borrower? Any suggestions?

Not a good idea. Never borrow from friends or family. It can ruin the relationship. Putting the house up as collateral is not wise either..

Besides, your just moving the money. You are not solving the real issue. You need to pay the debt back. :)

I would definitely not borrow on the home to pay student loans. The interest on your loans should be less than any mortgage interest would be.

But, if they want to help you pay your other debts, then a home equity line might be the best way to go.