Comments on: Use a HELOC as an emergency fund http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/ Professional guide to your personal finance. Fri, 04 Jul 2008 02:45:29 +0000 http://wordpress.org/?v=1.5.2 Comment on Use a HELOC as an emergency fund by: Anthony http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1965 Thu, 20 Mar 2008 19:43:26 +0000 http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1965 I have to say that is really not good advice at all. Any financial professional will tell you that having an emergency fund is a smart financial move. No (good) financial professional would tell these people to use debt over savings. That is just bad advice, plain and simple. Perhaps you are confusing the "trend" with people who use money merge accounts to pay down their mortgage instead of having these funds sitting around, then using the HELOC for emergencies, but still the recommendation is always to have an emergency fund because it make more sense to earn interest than to pay it. I have to say that is really not good advice at all. Any financial professional will tell you that having an emergency fund is a smart financial move. No (good) financial professional would tell these people to use debt over savings. That is just bad advice, plain and simple.

Perhaps you are confusing the “trend” with people who use money merge accounts to pay down their mortgage instead of having these funds sitting around, then using the HELOC for emergencies, but still the recommendation is always to have an emergency fund because it make more sense to earn interest than to pay it.

]]> Comment on Use a HELOC as an emergency fund by: savvy http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1935 Tue, 26 Feb 2008 16:22:30 +0000 http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1935 Uh, NO. Your emergency fund should NOT be put in 'high-yield invesments'. It should be kept in 'safe' accounts such as online savings accounts or MMAs. What if your investments are down when emergency strikes now you have to sell at a loss? Uh, NO. Your emergency fund should NOT be put in ‘high-yield invesments’. It should be kept in ’safe’ accounts such as online savings accounts or MMAs. What if your investments are down when emergency strikes now you have to sell at a loss?

]]> Comment on Use a HELOC as an emergency fund by: Jordan http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1933 Tue, 26 Feb 2008 05:33:11 +0000 http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1933 To clarify, the difference from the emergency fund should be put in higher yield investments rather than put in cash. If you put your emergency fund in a better yielding account, borrowing when you had an emergency could easily be covered by what you save. In no way am I recommending that you spend the money you would ordinarily save, I'm telling you to save the money you'd save more wisely; get higher returns on it but protect yourself in the mean time. To clarify, the difference from the emergency fund should be put in higher yield investments rather than put in cash. If you put your emergency fund in a better yielding account, borrowing when you had an emergency could easily be covered by what you save. In no way am I recommending that you spend the money you would ordinarily save, I’m telling you to save the money you’d save more wisely; get higher returns on it but protect yourself in the mean time.

]]> Comment on Use a HELOC as an emergency fund by: Debt Free Revolution http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1931 Mon, 25 Feb 2008 17:42:31 +0000 http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1931 I'll second what savvy said. An emergency is NOT a good time to get deeper in debt! An emergency is the time you need to hunker down and batten the hatches, and you often can't be sure just how long it will last. I'm sure there's quite a few folks in Michigan who would disagree with this advice as well. Or maybe in California or south Florida or Nevada or Arizona, where the housing bubbles have burst most dramatically. In fact, just what is your advice for people who suddenly find themselves upside down in their mortgage when housing prices for their area tank? I’ll second what savvy said. An emergency is NOT a good time to get deeper in debt! An emergency is the time you need to hunker down and batten the hatches, and you often can’t be sure just how long it will last. I’m sure there’s quite a few folks in Michigan who would disagree with this advice as well. Or maybe in California or south Florida or Nevada or Arizona, where the housing bubbles have burst most dramatically.

In fact, just what is your advice for people who suddenly find themselves upside down in their mortgage when housing prices for their area tank?

]]> Comment on Use a HELOC as an emergency fund by: savvy http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1929 Mon, 25 Feb 2008 04:12:53 +0000 http://www.personal-finance-guide.org/archives/246/use-a-heloc-as-an-emergency-fund/#comment-1929 I wouldn't count on a HELOC for an emergency fund. As of late, banks are reducing the amount of HELOC credit available on existing accounts. It would be a sticky situation if you lost your job without having much liquid savings then found your HELOC reduced as well. IMHO, people should get away from relying on credit and concentrate on saving. I wouldn’t count on a HELOC for an emergency fund. As of late, banks are reducing the amount of HELOC credit available on existing accounts. It would be a sticky situation if you lost your job without having much liquid savings then found your HELOC reduced as well. IMHO, people should get away from relying on credit and concentrate on saving.

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