i had a LOC for around $30,000 because at the time i wasn't in front enough to redraw and the house hadn't increased in value enough either. in hindsight i shouldn't have done it but at the time it seemed like a good idea. can work well for some people but as others have stated, the temptation to keep spending it is huge! mine never reduced! after a couple of years, more collaterall built up etc, i consolidated the two ( mortgage and LOC ) into one morgage amount. was a lot easier to manage. in a different position now but i personally wouldn't do an LOC again.