Homeowners Are Reaching for Their Credit Cards When Disaster Strikes—and Ignoring a Vital Financial Lifeline

Being house-rich, cash-poor is the new reality for a majority of Americans, regardless of age. So is racking up debt. With gas and food prices remaining high alongside surging property taxes and home insurance, homeowners face financial pressure from every angle.A common course of action is reaching for a credit card. Cards are easily accessible, and many cardholders view cash-back or travel rewards as an incentive to use them. However, using a card comes with a cost: Total U.S. credit card debt reached $1.26 trillion after increasing by $21 billion in the second quarter of this year, according to data from the Federal Reserve Bank of New York.Overall, outstanding credit card balances sit just shy of the $1.28 trillion record set in late 2025. Meanwhile, Federal Reserve data shows the average credit card interest rate across all accounts stands at 20.94% in 2026, climbing to 22.15% for accounts actively carrying a balance. Relying on credit cards without paying them off immediately is a slippery slope—and for homeowners, there is an avenue often overlooked that can be far more beneficial to getting their housing bills paid.Funding a financial emergency"There are a lot of households...