| Guest column: Home equity loans should be used sparingly
The versatility of the home equity line of credit has many consumers tapping into their home's equity to pay for home improvement projects, college tuition, weddings, new vehicles and credit card consolidation. While there are no restrictions on how the proceeds can be used, using your home's equity as a temporary solution to a long-term problem could jeopardize your home and credit. For example, using a home equity line of credit to consolidate credit card debt can put you into further debt if you continue to use your plastic and carry a balance from month to month. Your home is usually your largest asset. If you choose to use your home for additional credit, be sure you have a plan and purpose for that credit, such as financing a home renovation to improve your asset and increase your home's value.
ANZ battered
The market punished the ANZ yesterday, despite reporting its highest ever profit. The shares closed down $1.15, or 3.7% at $29.96, with a massive 23.25 million shares traded, worth $670 million. It was a real sell-off which only brushed its rivals. Both the NAB and the CBA had strong rises yesterday in comparison. That cut the year's gain for the bank of 10% up till Wednesday night, to just over 6%, well down from the 14% rise in the bank index. On the face of it, it was an odd reaction to some solid looking figures and the market might be accused of over reacting and not taking heed of previous qualified guidance on an expected rise in impaired loan provisions. That increase will continue in the coming year to be faster than revenue growth, according to an outlook comment issued yesterday, so shareholders had better expect more volatility in the ANZ share price, if yesterday's market reaction is any guide.
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