What you describe is not using your equity to pay your bills. It is using a home equity loan to transfer interest payments from non-deductable to deductable.
You still reach a steady state where the amount you pay each month is equal to the expenses for each month plus the interest charge on whatever loans you have taken out.
If you are actually USING your equity to pay your monthly bills, you will eventually spend all of your equity, and then you will go bankrupt.
Equity is like savings, and can be used to cover temporary shortfalls, but it’s no good for monthly expenses until you are old enough that you expect to die before you run out of savings/equity.
I’m still waiting......
I use my equity to pay many expenses. College tuition for my son, home repair and improvement and any unexpected large expenditures as required.
My excess income is sunk into high yielding investments.
If you can pay your unexpected immediate bills with equity financing and not have to dip into your high yield equity (i.e. stocks) that can pay dividends as well as appreciate in value, you have a situation where you can finance your short term needs from dividends, interest income and capital gains.
It takes smarts and discipline. Which is apparently in short supply to the Frosts.
The Frosts are gaming the system.