To preface this I would like to state that I work with mostly very young buyers and sellers. I don't specialize in this, but right now it's just how it's working out. Younger buyers typically mean less money down and very little equity, which can be challenging considering that home prices have dropped considerably the past few years.
Now, the reason I'm saying be careful with your line of credit is because it was most likely based on your homes value when you applied for the line of credit. Banks typically want to keep 80/20 or 90/10 Loan to value so there is a limit to how much money they will give your beyond what you've promised to pay back on your mortgage.
Over the past few years when your home's value may have lost 10% of more of it's value, your line of credit did not adjust accordingly. So now you owe more than your home is worth. The worst part is you probably didn't even realize it. Like many now your are up $#*s creek with no paddle.
So if you've run up your line of credit, don't expect to get out easy. If you in a position where it's all you have, do your best to use it sparingly. If you have a line of credit to make home improvements, make sure that the ROI (return on investment) justifies your spending.
The line of credit is tied to the house so it must be paid off with the sale of the property.
We are no longer a microwave generation of now now now. Delayed gratification is becoming a bigger, stronger part of our society. So I shall preach a bit more. If you can't afford something, wait until you can. If you have to finance everything you buy, you're really going to be in trouble long term.
Just because you can afford to make the payment doesn't mean you can afford whatever it is that you're buying.
Let's visit the situation of a lost job, which means lost income, which means everything that has been financed is owned by the bank. Selling these items would result in huge losses and still not pay back the financed amounts.
Ownership is very important. Also a lack of financing items, promotes saving. Saving created a feeling of comfort and typically will decrease stress. Hell you might even be able to invest some money in an interest bearing account. Turn the tables so that your collecting the interest instead of being at the mercy of the lending institutions. They have too much power as it is.
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