There are so many reasons why you should take advantage of the equity in your home and take out a home equity loan. Any of the reasons require careful consideration and deliberation because you are putting your home at potential risk. Here are the top three.

I am sure there are others. How creative can you be?

1. DEBT CONSOLIDATION. Maybe the most common because it makes the most sense. Again you are using the cheapest money-near a first mortgage rate-now as cheap as 7.5% to pay off the most expensive (10-23%) for credit cards and other debts. There is no cheaper lending rate than a first mortgage rate.

2. HOME IMPROVEMENTS. Adding value to your home and increasing the enjoyment factor is near the top of the list for reasons to get a home equity loan. There is nothing more fun than a new pool in the backyard or a new enclosed patio for a second family room. The list goes on.

3. COLLEGE EXPENSES. The dream of a lot of parents these days is to be able to send their children to the college of their choice. College expenses are growing at a rate higher than even medical expenses with no end in sight. In this day and age of a global economy a college education is almost a must. A college education is the biggest gift parents can give to their children.

These are the most popular uses of the proceeds from a home equity loan. Of course there are many others. Your imagination is your limit.

In 2005 the value of home equity across the US was $11.3 trillion. With this treasure trove of cash available, literally for the asking, it makes no sense to have credit card debt. It makes no sense to borrow money for anything other than with a home equity loan. Any big expense that comes up like college expenses, medical expenses, and travel, on and on can be taken care of handily with a home equity loan.