Most of the time, the average person isn’t prepared for a financial emergency. They simply live paycheck to paycheck and leave the planning for bankers and financial advisors. Most financial advisors recommend for the consumer to have at least six months salary in a savings account for immediate access in case of emergencies. The sad thing about this is most Americans simply don’t have that amount of money put away. At least not for immediate access and what little they’ve stashed, they usually end up dipping into it for items like furniture, entertainment, or that vacation they just couldn’t live without, if they didn’t go on.

Does that mean a financial emergency will skip the ill prepared and move on to those that have savings to handle it? Absolutely not. A financial emergency can happen to anyone at anytime. Prepared or not. Anyone could have an accident, fall ill to sickness and have to take time off from work, or in today’s economy, suffer a lay-off. So what do you do if you’re unprepared and the emergency comes anyway?

If you own your own home, you can refinance your mortgage to free up your equity in the form of cash. Remember, if you chose to do this, it is a loan that has to be repaid. Contact your local mortgage broker. Most likely, you’ve already developed a good working relationship with them, considering you already have a mortgage with the company. They are willing to discuss equity loan options with you and help you decide on which plan is best for you.