 TITLE: Best and Worst Ways to Use a HELOC CONTENT: What's a Good Way to Use a HELOC?\n---------------------------------\nHELOC payments can soar when the draw period ends, and you could lose your home if you can't repay the loan. Because of this risk, HELOCs are best used for the following:\n*   **Home improvements:** HELOCs are well-suited to finance home improvements that are completed in stages because you can draw money as you need it. If the improvements add to your home's value, interest paid on the HELOC may be tax-deductible.\n*   **Major home repairs:** Discovering your home needs a new roof or repiping can put a big dent in your budget if your emergency fund can't cover the cost. A HELOC can help pay for costly repairs, and interest on the HELOC can be tax-deductible if the repairs increase the home's value.\n*   **Financial emergencies:** If you lose your job, face a major medical bill or other financial crisis, a HELOC can help you get back on your feet.\n*   **Paying off credit card debt:** Using a HELOC to pay off high-interest credit card balances may be a wise move, but only if you have a well-thought-out plan to avoid building up that debt again. Otherwise, you could find yourself with high credit card balances plus HELOC payments. END