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Okay, today's question comes from Sam in Arkansas. He says, when it comes to types of debt, are some worse than other types?

For instance, are credit cards worse than a he lock? I have a high

credit card debt, so I thought about taking out a helock to pay them off, but I wasn't sure if this

would make me worse off than I already am. So let's talk about, there's a couple of different

levels to this question. First off,

debt is debt, right? Anytime you owe somebody money, you're slave to the lender. So for the

purposes of this, just think of it that way. Like, I want to avoid debt. And if you're looking for

a solution from your debt, in this case, you're looking for a solution from your credit card debt,

yeah, moving it over,

that's not a solution. You could possibly save a little bit on interest, but don't think of that as the

solution. The solution is you got to pay it off because if you just move it to a helock, you've just

moved it. It's not gone. You've just rolled it into an asset and you still have to pay it.

While putting your home at risk.

Right. And moving to likely a variable interest rate on these helix. Exactly. Oh, yeah. That's very true, George. It's a terrible solution for a lot of reasons. Yeah. But it doesn't attack the behavior that got us there. And we know personal finances, 80% behavior, 20% head knowledge. So you could mathematically go, well, this is a better debt to get into it.

And you're going to be a rat in the maze. Yeah. And we do find that a lot of times when folks consolidate debt, whether it's into a helock or another type of personal loan, it's kind of like, oh, great, they feel like they've solved it. And then they keep piling up debt because they went from paying, I don't know, seven different bills to one bill. And somehow that made them feel like they had less debt.

And so now that frees me up to just go into more debt. Right. So it's not, you know, there's,

there's moments in time here on the show where you might hear us say something like, you know,

a guy's upside down in a car payment and we'd say,

yeah, you know, get a loan for the difference or we'd convince them to do something that would get

them out of a higher amount of debt to get into a lower amount of debt, right?

But in that case, that's only, really the only time you'd hear us say to move something.

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