The Home Equity Trap: A Double Edged Sword in the Fight Against Debt The Great Recession left many Americans financially battered, but also a surprising silver lining: record amounts of home equity.
As property values continued to rise after the pandemic era bubble burst, homeowners found themselves sitting on a potential treasure trove of cash – a resource they could tap into to pay off high rate debt.
For borrowers struggling with credit card balances that are suffocating their budgets, using home equity to consolidate debt might seem like a no brainer. However, this strategy is not as clear cut as it seems.