If you already have some form of business credit, you may soon be receiving home equity line offers, encouraging you to use your home as collateral for a new loan.

Seattle PI explains:

“During the past few months I’ve seen that mortgage brokers have switched their marketing focus from big credit card spenders in need of debt consolidation to would-be small-business owners. They imply that borrowing from your home is “smart” and that “your dream business” will easily pay off the increased personal debt load.

Well, I think there is enough evidence in the financial markets today to demonstrate that some slick “dream” promotion can easily turn out to be a consumer nightmare.”

Check out their full article for a list of the pros and cons of such a decision. (My opinion: it’s almost always a bad idea - especially with today’s economic volatility).

See Also:

5 Financially Sound Ways to Use a Home Equity Line of Credit

How a HELOC Works

Printable HELOC Comparison Worksheet

Tags | advertising, Heloc, home equity line of credit