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As Credit Card Debt Mounts, Home Becomes a Piggy Bank
The New York Times • • business
Key Points:
- Linda Boroski, a retired schoolteacher in Bellevue, Ohio, used a $45,000 home-equity loan to pay off $26,000 in credit card debt and make home renovations after struggling with expenses related to medical travel.
- Despite rising credit card debt, many Americans continue to spend actively, supported by a record $35 trillion in accumulated home equity.
- Homeowners are increasingly tapping into their home equity to manage debt and maintain their lifestyles, highlighting the role of home equity as a financial resource.
- Economists note that this trend reflects how people leverage their housing wealth to cover expenses and reduce higher-interest debts like credit cards.
