Manage cash vs HELOC
We're doing some major home repairs and I had planned to tap into an equity credit line to pay for them. We planned this work several months ago, but now that it is coming close to the time to draw on the credit line, I'm having second thoughts. Our YNAB budget is in great shape, with lots of cash sitting around padding all the emergency categories, age of cash over 100 days.
Normally I'd prefer using (non-credit card) debt over cash since debt gives me more flexibility: I can pay the debt off quickly or slowly, but once that cash is spent, it's gone. But with the HELOC, I'm thinking why would I want to start accruing interest on a loan today with all this cash on hand? Since the cash is all budgeted in YNAB, it isn't really doing any work for me (like earning investment returns). I could zero-out all those budget lines and pay for most/all of the repairs. Then, I can draw on the HELOC if/when I need the cash for the purpose that it was originally budgeted. Best case, those budget categories just get built back up over time; worst case everything goes wrong tomorrow and I just tap the HELOC as originally planned.
Anyone have any thoughts on how to manage a situation like this, both in life and in YNAB?