Little Family Vacation

by Rocket Finance

We just returned from a little family vacation that took three days and cost a total of $200 (including gas and food). We enjoyed our time together as a family and returned home with dirty laundry and exhausted kids – just like any vacation. My wife has stated on a number of occasions that whe would like to take our family to Disneyland some day. I personally don’t think we will ever afford it . . . besides, I like our little three day, two hundred dollar vacations.

But then I was looking at some advertisements recently for home equity loans. Several of the ads promoted the use of a home equity line of credit in order to finance a family vacation to places like Mexico, Disney, Hawaii, etc. Seems like a dumb decision to me. Now, I am not sure if a vacation is the worst possible use of credit, but taking out a loan on your house so you can go see Mickey and his pals has to rank pretty highly on that list. Just off the top of my head, here are some other worst possible uses for a HELOC:

1) To put your child through college
2) To finance a start-up business for a friend
3) To purchase new furniture
4) To finance a wedding
5) To enter the World Series of Poker Main Event

Can any of you think of worse reasons to mortgage your house?

  1. 2 Responses to “Little Family Vacation”

  2. By Super Saver on Jul 14, 2007 | Reply

    Rocket,

    Hmmm.. I can’t think of any good reasons. But then I am pretty debt adverse.

    Here are some additional bad reasons:

    1. Consolidate debt
    2. Buy stock
    3. Start up a business, although thre are some examples of great successes from doing so.

  3. By rocketc on Jul 14, 2007 | Reply

    We do read about people getting a HELOC to finance a business and being successful on a fairly regular basis. I wonder what percentage of those situations end in disaster.

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