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Assets Quote by Jean Chatzky

“When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.” quote by Jean Chatzky
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“When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.”

Jean Chatzky

About This Quote

Securing credit card debt with a mortgage puts a home at risk, turning unsecured debt into a secured liability.

In simple terms: Using a house to pay credit cards is risky.

Key Takeaway

Avoid converting unsecured debt into secured debt.

Themes

finance risk debt homeownership

Mood

cautious analytical

Type

advisory financial

When to use this quote

  • personal budgeting
  • mortgage counseling
  • debt consolidation decisions

Key Concepts

secured vs unsecured debt financial leverage

Questions to Reflect On

  • Is the short‑term relief worth long‑term risk?
  • What alternatives exist?
A Different Perspective

Home equity may be lost if payments fail.

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