 TITLE: Best and Worst Ways to Use a HELOC CONTENT: Alternatives to HELOCs\n----------------------\nIf a HELOC isn't for you, consider these other ways to finance big purchases or unexpected expenses.\n*   **Personal loan:** Personal loans are installment loans that typically have fixed interest rates, require no collateral and can be used for any purpose. Interest rates are generally higher than for HELOCs, and interest is not deductible. Personal loans are available for up to $100,000. Experian CreditMatch™ can help you find loans fitting your credit profile.\n*   **Personal line of credit:** Borrowers with good credit may qualify for a personal line of credit from their bank or credit union. Most personal lines of credit are unsecured with a draw period of a few years. Unlike HELOCs, these unsecured credit lines count toward your credit utilization ratio, so drawing more than 30% of your limit may hurt your credit score.\n*   **Balance transfer card:** If you have good credit, a balance transfer card with a low or 0% introductory annual percentage rate (APR) can help you pay down high-interest credit card balances. Transfer balances to the new card, pay them off before the introductory period ends and you'll pay no interest.\n*   **Cash-out home refinance:** This option refinances your mortgage into a new, larger mortgage; you receive the difference in cash. If interest rates have dropped since you got your mortgage, a cash-out refi can also help you save on interest. However, cash-out refis are time-consuming and require starting your mortgage clock all over again, so carefully weigh the costs and benefits.\nKeep in mind that borrowing money isn't the only way to pay off debt. Investigate all your options. For instance, if you have medical debt, you can ask about payment plans, negotiate with the medical provider or seek financial assistance. Overwhelmed with credit card debt? A reputable credit counselor can create a debt management plan for you and work with your creditors to lower interest rates, waive fees and reduce your payments. END