I agree with abctax55... VERY Scary!!!.... there are much better ways to eradicate credit card debt than giving up equity as she indicated. I've read what a google search brings up and it's not much to go on.... I'd want to see the contract wording. IMO, it's no better than a reverse mortgage and there is no way to predict the IRS position on the characterization.  Credit card debt is unsecured....  period. I'd consider bankruptcy before going down this path.... lot cheaper and the healing is faster....