Comments on: Using a Home Equity Loan for an Emergency Fund

By: world of warcraft cards

world of warcraft cards — Tue, 07 Sep 2010 05:49:00 +0000

There’s also the damage to your credit rating. Whenever you borrow more money, your debt in order to earnings ratio raises, as well as your credit rating usage, which can be really harmful in order to your credit score should you have to be getting some sort of major mortgage soon.

By: Frank Polenose

Frank Polenose — Fri, 05 Feb 2010 17:51:43 +0000

Take a look at our homeowner loans site if you want to learn more.

By: home_equity_loans

home_equity_loans — Thu, 10 Sep 2009 16:01:35 +0000

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By: home_equity_loans

home_equity_loans — Thu, 10 Sep 2009 09:01:35 +0000

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By: ggreenblog

ggreenblog — Sun, 01 Apr 2007 15:09:00 +0000

Breadman, Trent recently wrote a great article about what exactly emergency funds are over at the simple dollar, definitely a good read.

http://www.thesimpledollar.com/2007/01/03/emergency-funds-how-and-why-you-should-get-started-right-now/

Indeed you are gaining 8% by paying off your heloc which is a good thing, but the idea is that you have some money in savings so that if an emergency does come up, say you lose your job and need money to eat, you have some money to do so. This way you can rely on your savings rather further having to go in debt.

By: breadman

breadman — Sun, 01 Apr 2007 07:13:00 +0000

I think your reasoning is right, but my problem with “emergency fund” is that I have no idea what that means. In other words, what constitutes an “emergency fund”. If I have a HELOC and I’m putting money away in Savings–i’d rather put that money toward the HELOC (pay down the debt) and then re-access that money from the HELOC when it’s needed, that way, i’m sort of gaining “8%”