Your holiday to-do list is probably already long enough, and then you add in worrying about how to pay for it all. Between plane tickets, presents, groceries and those last-minute home projects before guests arrive, holiday expenses can add up quickly.
Setting a budget can help you keep spending in check. For larger planned expenses, a home equity line of credit (HELOC) may be another option to consider. A HELOC allows eligible homeowners to borrow against their home equity as needed, up to an approved credit limit.
4 Ways a HELOC Could Help You Prepare for the Holidays
If you're considering a HELOC, here are a few ways it could help you manage seasonal expenses.
Make holiday travel easier to manage. Traveling to visit family and friends can be costly, especially when airfare, lodging, gas and meals add up. A HELOC could provide access to funds for a larger, planned trip, but be sure to consider the total cost and how you'll repay what you borrow after the holidays.
Keep gift-giving in perspective. It's easy to spend more than you intended on presents, especially when holiday deals are everywhere. Before making purchases, set a spending limit and prioritize what's most important. Our 12 holiday shopping tips can help you find ways to save and keep your gift list within budget.
Get your home ready for guests. Hosting family and friends may inspire a few home projects, from updating a guest bathroom to making needed repairs before winter. A HELOC may help fund eligible home improvements but consider the total cost and whether borrowing fits your budget.
Prepare for holiday hosting expenses. A family dinner or a house full of overnight guests can mean extra costs for groceries and other preparations. Plan ahead to estimate your expenses before making purchases. A HELOC may offer flexibility for certain costs, but budgeting and saving are often better options for everyday holiday spending.
Looking for more ways to plan for seasonal expenses? Explore our Holiday Spending resource page and read Fund Your Holiday Traditions with Confidence for additional ideas and financing resources.
Think Beyond the Holiday Season
Your financial goals don't stop when the decorations come down. If you're thinking ahead to the new year, explore how a HELOC may help bring your New Year’s resolutions to life and work toward longer-term goals.
Borrow Responsibly This Holiday Season
Before using a HELOC, keep a few things in mind:
Understand the costs. Review interest rates, fees and repayment terms, including the possibility of changing monthly payments.
Borrow only what you need. An available credit limit doesn't mean you need to use it all.
Plan for repayment. Make sure payments fit your budget and won't interfere with other financial priorities.
Consider your alternatives. Savings or other financing options may be a better fit, depending on the expense.
Remember, a HELOC uses your home as collateral, so borrowing more than you can repay could put your home at risk.
Make Your Holiday Plans with Confidence
Planning ahead can help you enjoy the holidays while keeping your financial goals in sight. If you have questions about your options, Members 1st is here to help.
As a member, your personalized MyConcierge is your go-to resource for financial questions and guidance to help you find the information you need.
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