Shoutout to my accountant for pointing out my HELOC mistake

I was using it like a checking account for two years until he showed me the interest statement from December. Anyone else get too comfortable with a line of credit?

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3 Comments

nancy_smith6mo ago

Set up a separate checking account for daily stuff and only use the HELOC for planned big expenses. I started tracking my HELOC balance on the first of every month, just like a bill. It keeps me from letting it creep up without noticing.

6

max_ross6mo ago

My cousin Mark tried something like that with his home equity line. He ended up using it for a new patio set, then a last minute vacation, and suddenly he'd added fifteen thousand dollars without a real plan. It took him two years of tight budgets to pay it back down. Now he swears by a locked folder with a list of approved big purchases, like a new roof, before he even touches that account.

1

thompson.nathan5mo ago

Mark's locked folder idea is genius. I might borrow that for my own HELOC.

1