How to Use a HELOC for Unexpected Bills
How much do you have saved in your rainy day fund? If you're like most Americans, then the odds are that you don't have quite enough in your savings account to cover a month's of expenses. Unfortunately, a flooded basement, car accident, or an unplanned medical bill or injury can easily wipe that out—and then some.
If you're a homeowner, then we've got a way to help. Did you know that you could leverage and put to use the equity you've invested in your home? With a home equity line of credit or HELOC, you can use as much or as little as you need and pay interest only on the balance you've actually used for an emergency fund.
What Kinds of Projects or Expenses Could Your HELOC Help Pay For
A HELOC is for much more than home improvement—you could use it for just about anything, and until you save up three to six months of expenses, a HELOC can be ready and waiting just in case.
- Paying off credit card debt
- Funding college education
- Finishing a basement
- Updating kitchen countertops
- Paying for medical bills
- Providing an extra cushion in your emergency fund for unexpected events
How to Use a HELOC As an Emergency Fund
After opening your HELOC, you won't need to do anything else. You'll have cash waiting for any emergency, and if something does come up, you'll have interest-only payments during the draw period. To find out more, read our article about How to Qualify For a HELOC and to learn a bit more about how a HELOC works.
WaFd Bank is Here to Help
When it comes to getting your finances in order for the ups and downs of life, a little planning goes a long way. Whether you're a seasoned budgeting pro or new to saving (check out WaFd Bank's account options while you're here), your local WaFd Bank branch is available to help you reach your financial goals. Visit your local branch, open an account online, or give us a call at 800-324-9375 to learn more and open an account today.
