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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If you own an home, open a HELOC if you don’t already have one.  Use it as a “ break glass” option if needed.  [/quote]

Is there any downside to doing this? [/quote]

There is a one time fee to open up a line of credit.  I think I paid $150 years ago.  You don't have to use the line, you can just have it as an option.  I ultimately used it do do various house projects, but that was 20 years ago when my HELOC was at 3%.

The downside is in today's environment, the rates are not great.  The other downside is you need to understand what a HELOC is.  It is basically a second mortgage.  You can open up a 20 year line of credit.  If you spend $50K on the line, you have 20 years to pay that line off.  But if you only pay the interest, you will be facing a $50K payment(balloon) in 20 years. So you need to be cognizant of the risk of only paying the minimum.  But in the short term it is an option.

It is probably better than using a credit card but remember your home is he collateral.   I am not sure if it is better than a 401K loan, but you can probably find some sort of prioritization on the internet of what to use if you need to borrow to live until finding a new position.

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