An equity loan can be a godsend if you lose your job.
There's a flaw though in using equity debt to pay for your daily
expenses.
You are at the mercy of the creditors should you eventually have
to declare bankruptcy. In a Chapter 7 bankruptcy,
you can walk away from unsecured debt, such as credit card balances.
But if your house secures those debts, you are stuck with paying
them. If you can't make the payments, you can lose the house
to foreclosure, and you won't see a dime of the sale proceeds
until
all the creditors are paid. It might be better to tap other sources
of money: savings, one's 401(k) or individual retirement account,
or stocks and bonds.
