We prefer no debt (we are not from the US originally).

The banks thought I was a dead beat because of my debt to income ratio.  

does that mean they are getting the debt non recourse and you bring equity ?

There is life stages to investing, and the math is clear that strategic debt use, strategic leverage, pyramiding, appreciation, is the wealth generator. 

The problem is, that's not proper accounting because a credit card is a liability, and doing this workaround will reduce your assets rather than increase your liabilities, which totally messes up your balance sheet and debt-to-income ratios.  

I don't believe you would properly replace the debt in this situation.

Taking out more debt does not sound like the best option IMO.

How does the already deep in debt CA afford to tack on $50 BILLION in debt service?

If so, you'll need to figure out why you're not making money - is it other operating inefficiencies or your debt terms?

Actually you'd never hit that because eventually the debt pushes you into a margin call and forced sell and you'd be at or near $0 in just handful of years at best.