Is a HELOC Worth the Risk?

1019. If you have enough home equity and not enough cash, you may wonder about taking a home equity line of credit (HELOC). Laura answers a listener’s question about whether taking a larger HELOC to pay for an expensive car repair and an upcoming wedding is a good or “horrible” idea. Key Takeaways: Most lenders require you to maintain at least 20% home equity after tapping it with a HELOC. HELOC borrowers must also have enough income, a suitable debt-to-income ratio, and sufficient credit scores to qualify. Getting a HELOC gives you more flexibility and lower interest rates than other financing options, such as a credit card. If you use HELOC funds to buy, build, or remodel a home, interest paid on a limited amount of debt is tax-deductible. Primary HELOC downsides include paying variable interest, reducing your home equity, and risking foreclosure if you’re unable to repay it. Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com . Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.

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Is a HELOC Worth the Risk? is an episode from Money Girl's Quick and Dirty Tips for a Richer Life by Macmillan Holdings, LLC.

This episode is 14:39 long.

This episode was published on May 15, 2026.

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