Originally Posted by joshnky
Apparently this family still had financial trouble after the new home (shocking) and now are probably in even worse shape after borrowing 450K against the home that was given them.
This is why I advise anyone who asks to never borrow against their home for anything short of a life-threatening emergency (unless it's to fund a project to actually *add* value to the home).
Borrowing against your home to pay off credit card debt is just a horrable idea. Not sure of the details of the family in question so I'm not really commenting about them specifically.
But whether it's borrowing against your home to pay off debt, or borrowing against a home that was gifted to you, unless and until you change the underlying bad habits that got you into hotwater, you are only delaying the inevitable.