No. of Recommendations: 5
There is a very interesting article on home equity loans at the site, at:

If that link doesn't work (I'm technically impaired) the articles is titled "On dangerous ground -- many use equity loans to increase debt instead of paying it down".

The article cites a recent study of the financial habits of 6,000 households. Of those that had taken out home equity loans, only 30% remained debt-free 11 months later. The other 70% had new debt - on average, $2,133 - and this is after only 11 months.

Many people on this board have warned of the danger of feeling complacent after a home equity loan, and falling back into the habit of debting. This article suggests that this is the norm.

Very scary!
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