Why Using Your Home as an ATM Could Wreck Your Life

HELOC sounds cool on paper—tap your home equity, grab some cash, invest it, make millions. Dave Ramsey thinks it’s a trap, and honestly? The man has a point.

Here’s the harsh reality: your home is your biggest asset. Taking out a HELOC means you’re literally betting your house on whether your investment gamble will pay off. Lose the bet? Welcome to foreclosure.

But that’s not even the worst part:

Variable rates = you could lock in a low rate today and watch it balloon tomorrow. Your “brilliant” investment move suddenly costs way more.

You’re still in debt. Moving debt around isn’t progress—it’s just rearranging deck chairs. The behavioral issue (80% of personal finance is psychology, btw) stays the same.

HELOC creep is real. Easy access to funds = easy overspending. Suddenly you owe way more than planned, and your budget can’t handle it.

Using it as an emergency fund? Terrible idea. Now your emergency costs you interest on a variable-rate loan instead of coming from actual savings.

Ramsey’s take: don’t do it. Build an actual emergency fund, stay debt-free, keep your house out of the equation.

The real question isn’t whether HELOC is smart—it’s whether you can afford the stress when things don’t work out.