Exchanging Unsecured Debt for Secured Debt

Over the weekend, I wrote about how my credit card company is trying to get me to refinance my home with them, and take out some cash. For me, this is an obviously foolhardy move. Such offers usually go straight through the shredder.
But Sean left a comment that I feel is very pertinent to the idea of unsecured debt and secured debt:
Credit cards are “unsecured debt,” meaning that if you default or go bankrupt, they can’t take your house, car or stuff. They are last in line, behind secured debt, like your mortgage. When they see people getting in trouble, …read more