Interest rates are near all-time lows. So if you have a home equity line of credit, this is a much cheaper way to cover expenses than a credit card. If you don鈥檛 have a home equity line, apply for one right away. (You may not be able to obtain a home equity line of credit if your regular income is compromised.) Don鈥檛 use your credit card to finance living expenses, because they鈥檙e one of the most expensive ways to borrow money. You will be paying interest rates of 15 percent or more annually on every dollar you owe. And don鈥檛 take withdrawals from your retirement plan. Whether you have a 401(k), a 403(b), or an individual retirement account, you will face significant penalties if you take an early withdrawal. You will have to pay taxes on your withdrawal because it鈥檚 treated as income and a 10 percent early withdrawal penalty.
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