 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: When Should You Tap Your Home's Equity?\n---------------------------------------\nUsing your home's equity is a serious decision. When you're doing it to cover an emergency, make sure it's for something that you truly need. Reasons might include:\n*   Uncovered medical or dental costs: If your medical insurance policy has a high deductible, you could be saddled with massive bills. Dental bills, too, can accumulate to an amount that's more than you can afford to pay with income or normal savings.\n*   Necessary home repairs: Termites, blown water heaters, faulty electrical work—these all can be very expensive and yet necessary to fix.\n*   Car repair or replacement: Tapping your home equity might cost more than it's worth for a car repair (a 0% APR credit card or personal loan may be a better option), but it could be worth considering depending on your situation.\n*   Legal expenses: Maybe you're in the middle of a drawn-out divorce, have been sued or are involved in a criminal investigation. Lawyers aren't cheap, so the equity in your home can come in handy.\n*   Big tax bill: Owing the IRS or the state can be pricey, since penalty fees and interest are added in. Paying off tax debt in one fell swoop can save you a substantial amount of money.\n*   High interest debt: Although not technically an emergency, when you're overwhelmed by debt and are paying high interest rates, using home equity could make sense—as long as you're not tempted to run up your cards again once they are paid off.\n*   Job loss: Unemployment is a possible reason you may want to reach into your home's equity. Just make sure you'll be back to work soon so you can make any necessary loan payments—otherwise you put your home in danger. END