 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: What Can You Use a HELOC For?\n-----------------------------\nThe proceeds of a HELOC can be used for any purpose you choose. However, the most common reasons homeowners take out HELOCs include:\n*   **Financing home improvements**: Many people use HELOCs to pay for home upgrades that will add to the value of the home. HELOCs can be a good way to finance home remodeling because they let you borrow only as much as you need for each stage of the project. Depending on how much the improvements add to your home's value, you might even be able to deduct some or all of the interest on the HELOC at tax time if you itemize deductions. Learn more about home improvement loan options.\n*   **Accessing lower interest rates on credit**: If you are facing hefty medical bills, credit card bills or other sizable debt, you could use a lower interest HELOC to get the money you need to pay off higher interest debt. If you choose this option, however, it's important to make sure you don't get back in debt again. Otherwise, you could be putting your home at risk if you can't pay off the HELOC.\n*   **Paying education costs**: Since education is generally considered a good investment, some people use HELOCs to pay college tuition for their children or continuing education costs for themselves.\n*   **Starting a business**: Getting a loan to start a business can be difficult, so many startup entrepreneurs use a HELOC to finance their launch. However, it's important to weigh the potential consequences: If your business fails, you could lose both your business and your home. END