Everyone needs an emergency fund -- three to six months worth of after-tax income -- to cope with layoffs and big, unexpected expenses.

But a home equity line of credit that allows you to borrow against the value of your home by writing a check or swiping a debit card can be an alternative source of money until you've saved enough.

Don't wait until an emergency strikes to get one, because if you lose your job it will be much more difficult to get a loan. Set it up now -- and don't use it like an ATM machine. It's an emergency fund.

With a HELOC you can decide how much of the loan you want to pay off each month. While you must always pay the interest charge -- which is usually tax deductible -- you can choose to pay as much or as little of the principal as you wish.

While most lines of credit cost about $200 to establish and $50 a year to maintain, some lenders in Interest.com's extensive database of the best HELOC rates charge no application or annual fees.