You make a decent income but after paying your taxes, bills and high interest credit card payments you have little left to get ahead with.  Worse, the balances on your high interest credit cards never seem to go anywhere.  You pay down some debt, but end up using your available credit again.  Many mortgage professionals, banks and financial advisors will tell you to re-finance your property and pay off your high interest credit card debt. This is a good choice but it's not enough.  It works for a while but most people end up back in debt within a short period of time.  Even if you manage to live within your means and break even every month without going into your credit cards, you have failed to build wealth and get ahead.

This is where having the right credit instrument and a solid credit plan can help!  Using your home's equity to re-finance your high interest debt is a good start but a long-term credit plan is imperative if you expect your wealth to grow and get you ahead every month.  Many people successfully eliminate their high interest debts and enjoy the financial relief this brings but fail to take any further steps to improve their finances.  They fail to devise a long-term plan that actively builds their wealth every month and as result end up in the same situation as before.  At this stage it is important to replace credit instruments that have the potential to hold you back financially and develop an effective plan that gets you ahead every month.  You should be reducing consumer debt and increasing your equity on a regular basis, making you financially stronger month after month.  If you stop this process you will go backwards.  There is no in between.  Either you are building or falling behind. 

You can use the equity in your home and you're your good credit rating to get ahead every month.  While putting a portion of your paycheque away is necessary, it will not get you ahead.  However, your cash, equity and debt, if used strategically can ensure that you are constantly growing.  Income properties for instance can 1) provide you with a regular paycheque that can accumulate over time 2) build wealth for you every month as the mortgage gets paid down 3) appreciate in value over time, allowing you to pull out equity when needed.  If you think that putting your every dollar into renovating your home is a good investment, think again!  You will never get this money back, especially if you stay in the house.  While renovating a property can sometimes be an investment, such as converting a basement into a rental unit, most of the time it is just maintenance!  In a way it's like cleaning or fixing your car, you do it once only to do it again.  Buy something instead that helps you get ahead every month.