How do you use your HELOC?

[Financial Jungle Guy]

I am even more strongly opposed to having debt which is collateralized by my home. I.E., if I don't pay the debt, they can take my home.

If your home is not creditor proofed, they can take your home even if the debt isn't collateralized by your home. I think (correct me if I'm wrong) having the debt collateralized by your home simply means this particular lender is given the first dip at your home before other lenders.

Having said all that, leveraging is a very sensitive topic, and I can understand why people are resisting the idea. Investing with cash is never a bad option if people are uncomfortable with investment debts.

 

[JustCurious]

If your home is not creditor proofed, they can take your home even if the debt isn't collateralized by your home. I think (correct me if I'm wrong) having the debt collateralized by your home simply means this particular lender is given the first dip at your home before other lenders.

I will correct you because you are wrong. It depends on which state your home is located, but in some states like mine (Florida) your home is protected from all creditors, with the obvious exception of those creditors who have a collateral interest in your property (ie a mortgage).

 

[Financial Jungle Guy]

It depends on which state your home is located, but in some states like mine (Florida) your home is protected from all creditors

Fair enough. I'm from Canada, that's why I hesitated.