Let me be honest here. I’ve never considered home equity loans to be bad. I mean, tapping into your home’s equity is a good way to pay for necessities like your child’s higher education or for making an important purchase or for some other equally important task. But there is a school of thought that believes that home equity loans are just one more means of helping Americans drown into a sea of debt. Well, when you come to think of it, you could make wrong use of your home equity loan like using it to finance your vacation or a fancy car.
And today, more than ever before, being in debt is okay and people don’t even bat an eyelid when they see their neighbors driving themselves into bankruptcy. All this makes one wonder if we as a nation are mature enough to use our home equity loans for the correct purposes or should this type of loan be done away with totally? What’s your say? Lewrockwell.com reports:
Home equity loans are more popular than ever as people borrow against their home to feed their spending binge. Today, average homeowners owe nearly 50% of their home's value. Twenty years ago that figure stood at 30%. Can't you just picture the modern-day needlepoint plaque? "Home, Sweet Credit Line."
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