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.”
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.
Avoid converting unsecured debt into secured debt.
Themes
Mood
Type
When to use this quote
- personal budgeting
- mortgage counseling
- debt consolidation decisions
Key Concepts
Questions to Reflect On
- Is the short‑term relief worth long‑term risk?
- What alternatives exist?
Home equity may be lost if payments fail.