Dave Ramsey Just Warned You: Using Your Home as a Credit Card Is a "Stupid" Move

Real estate prices have been wild lately, and some investors are getting clever—using HELOC (home equity line of credit) to borrow against their homes for investments or debt payoff. Sounds smart? Dave Ramsey says it's a trap.

Here's why the personal finance guru is so fired up about it:

**You could literally lose your house.** Your home becomes collateral. Market crashes? Investment tanks? You can't pay back? Welcome to foreclosure.

**The stress will destroy you.** You're trading one financial headache for a bigger one. And if your investment flops? Now you owe money on something worthless.

**Interest rates can spike.** HELOC rates are variable. You might borrow at 5%, then watch it climb to 8%+. That's way more cash down the drain than you planned.

**You're not actually debt-free.** You're just shuffling it around and lying to yourself. Ramsey's point: personal finance is 80% behavior. Build a budget and pay it down. Don't play financial games.

**You could owe way more than expected.** Easy access to cash means easy overspending. Then suddenly you're underwater and panicking.

**Don't use it as an emergency fund.** This is the worst idea. When real emergencies hit, variable-rate debt turns things into a nightmare. Build actual savings instead.

Bottom line? Ramsey's verdict is clear: your home is not a piggy bank. Stop treating it like one.