Today there are close to 30 million U.S. households, or one in four consumers, spending more than they can afford. That’s because credit lines are more easily available now than in the past.

What consumers don’t realize is that they are spending fake money which nevertheless has to be repaid.

They are shocked by the increases (in monthly payments) they are getting.

People often turn around and charge up their credit cards again.

Within a two years, two-thirds of people who pull equity out of their home have the same amount of debt as they had before they consolidated. People think they’re saving money but really they’re just...