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A few years ago when housing prices kept going up and up and up, many homeowners turned their houses into piggy banks. Or so they thought, from the way they kept pulling money out of the houses in the forms of home equity loans.

Every time homeowners wanted something but didn't have the money to pay for it, they just turned to their cash machine - the bank. Expensive new SUV, jet ski, swimming pool, spa, new furniture, remodel of the house...don't have the money for it? That's okay, borrow against the home equity.

What they found out was that they'd made a terrible mistake. Their homes were not piggy banks. They were credit cards. And now the homeowners still owe the money, on houses which are worth far less these days then the outstanding mortgage and home equity loan.

What can debtors learn from this?

Never borrow unless it's for an emergency, and don't spend what you don't have. A true emergency is when your lights are about to be turned off or you have no money for groceries - and no way to earn money for groceries. Wanting to go on a vacation is not a real emergency.

Borrowing puts you in an extremely vulnerable position, because as we've found out these days, nothing is certain. It is not certain that homes will always hold their value, it is not certain that once-steady jobs will always be there, it is not certain that education and the willingness to work will keep you employed.

So learn from all of those who are now losing their their homes because they borrowed against them, and every time you consider putting something on credit, ask yourself if it was worth it.