CFA: Beware of Refinancing Card Debt

The Consumer Federation of America is warning borrowers not to turn credit card debt into mortgage debt unless they can control their credit card spending.Consumers should "avoid refinancing credit card debt using home equity loans unless they can avoid running up new debts," CFA executive director Stephen Brobeck said at a Wednesday morning press conference. Mr. Brobeck cited a recent study by Brittain Associates Inc., Atlanta, which found that two-thirds of households that use HELs to refinance credit card debt run up new credit card debt. "Many of these households risk losing their homes," the consumer advocate warned. The CFA used the press conference to show that credit card issuers are rapidly extending credit while at the same time pushing Congress to restrict consumer access to bankruptcy protection.