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I can't blame anyone for tapping into their HELOC or something similar to buy toys or vacations because I have certainly thought of doing the same thing at multiple points in my life. In my case, the plan is to pick up a nice, expensive vehicle that I would otherwise plan on purchasing / financing through other means anyway, and the HELOC is really just the lowest interest vehicle that I'd have access to among my options. But of course I would take my debt servicing capabilities into account before doing this.
Personally, I would only splurge on a long term (semi-)durable good -- ie. a nice car, a major home reno -- with my HELOC. One time stuff (such as a vacation) would not be something I'd consider. But the point is, at all times, you just have to be mindful of how much debt servicing capabilities you have. Insolvency due to stupidity, lack of planning, or poor planning is not an option.
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