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HELOC and Emergency Fund

Submitted by CF on October 10, 2007 - 06:49.

I have a HELOC balance (8+ percent), and put any additional money into paying that down rather than building an emergency fund. The way I see it is that I'm better paying down a higher interest rate (even factoring in tax deductibility) than making 5% interest. If I needed an emergency fund, I could use the HELOC, which has plenty remaining for 5-6 months expenses. Is there any risk that I'm missing in doing this?

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