Using Equity Lines To Pay Credit Cards

I often meet with clients who have been struggling financially for months or even years. They have been coming up with strategies on their own in order to make ends meet. These are people who work hard, and have faith their hard work will pay off eventually with stability for their families.

By the time they come see me, they often times have been paying credit card debt with other forms of credit. Last week, I met with a woman who had used her equity line to stay afloat and keep current on her credit cards.

Unfortunately, this is a bad strategy. In order to get Chapter 7 relief, and keep her home, she needed to remain current on her first mortgage and equity line. On the other hand, her credit card debt can be wiped out with her bankruptcy case. The effect of paying her credit cards with her equity line is that she increased a debt she had to pay back while paying down a debt which was going to be wiped away in its entirety.

Hard work is our biggest asset when tackling financial difficulty. However, it makes sense to seek help from a professional so your hard work can be properly directed to achieve the best result for you and your family. Consider speaking with a bankruptcy attorney quickly when financial difficulty arrives. You’ll be glad you did.