Cash Loan Crisis - Home Equity Loan

Home Equity Loan - Think About It, Then Run Away

Imagine - you have $50,000 just sitting around after you take out that home equity loan. Big plane - you're going to fix the roof, pay off your student loans, and maybe take the family on a vacation somewhere. Dallas? Fresno? Then all of a sudden you're hit with a $1500 medical bill between paychecks, just before your health insurance was supposed to kick in. Should you use that home equity loan as a resource for emergency financial assistance? SHOULD YOU DO IT?

Making the call, regretting the cash

Either way, you're going to regret the emergency actions taken with that home equity loan:

Either you'll use the money, pay off your bill and say goodbye to that fancy vacation you were all hoping for,
Or you'll put the charge on your credit card and feel like a jerk for the next six months as you struggle to pay it all off with higher interest rates to boot.

The important thing to consider is than you do have a choice, you can put that home equity loan to work on your sudden financial demand or you can sweat it out, hobble around for a few months and still look forward to future purchases or plans.

Recommendations from the Crisis Squadron

Heck - if you have the equity and need the extra funds, might as well take out that home equity loan. You don't necessarily have to use it, you can keep the money and just repay the interest when the term of the loan is finished. Or you can really make a splash and actually spend that home equity loan on things that matter, investments that will see a return greater than the interest you pay. Free money! YES! Its what we' all want, and its all possible with a home equity loan!