If you’re relying on a home equity line of credit to keep you afloat during this economic crisis, you may want to reconsider that plan.

The Boston Globe explains:

“Some families don’t have any cash on hand, but are relying on a home equity line of credit (HELOC) if times get tough. The only problem with that strategy is that some banks and lenders are cutting back on credit lines or closing HELOCs altogether. These days, cash is king. Try to have three to six months of cash on hand in a savings account you can access easily.”

Some families may still be able to withdraw on their lines, but you should definitely have alternatives in place. If the past few months have taught us anything, it’s that HELOCs cannot be taken for granted.

See Also:

List of Lenders Sending Home Equity Line Freeze Letters

Are Lenders Freezing Home Equity Lines Illegally?

Why Are Qualified Home Equity Borrowers Suffering?

Tags | Heloc, heloc freeze, home equity line of credit, mortgage crisis