We all have bills, but some of us are using the equity in our homes to pay them off.
According to Bankrate.com, 24 million homeowners thought it was just fine to tap into their home equity to pay down their bills. Researcher Greg McBride told KTRH younger homeowners are guiltier of this than others.
“It’s skewed more heavily to younger homeowners and those with lower income levels. Both are a reflection of the lack of other resources available anytime there is economic or financial disruption,” McBride explained.
Add in the fact that maybe these homeowners are simply living beyond their means, and McBride says you get these kinds of decisions.
“A lot of households are still very strained. About one in four households doesn’t have any emergency savings at all,” McBride said.
The numbers from this survey also show that 31% of homeowners earning less than 30 thousand dollars a year say it's okay to use home equity for other bills while 22% of millennials said the same thing, compared with just 12% of non-millennials.