I've had my primary mortgage paid off for some time, but do have a substantial HELOC that I occasionaly use. It's never for very long, and typically for other investment properties, etc. Actually, I even used it for my 911 (back when the rate (follows prime) was like 4%) but paid it off in short order. I had other sources that I didn't want to liquidate that were fetching a much higher return, tax considerations, etc. so it just made sense. From my perspective, it's a tool to be used prudently (for things like 911s
), and investment properties (avoids a lot of bs), and I would never use it as "found money". I do not have "other debts" like CCs, etc. but I could see someone using a HELOC to consolidate higher interest loans, but I would question the other debts first, and make damn sure the CCs were destroyed first.
ps: Home improvements, etc. that add equity would also be perfectly reasonable as in Rick's situation imo.