"'Twas the day after Thanksgiving, and all through the land, came thousands upon thousands of sales, a consumer budgetary quicksand."

It's the time of the year when everyone's wish lists for Santa Claus come out. Coincidentally, so do hundreds of coupons, one-day specials, and seasonal markdowns-anything and everything that can motivate you to make sure that there's abundance under the tree. Unfortunately, many people can't resist the urge to overspend, setting themselves up for a cash crunch when the January bills roll in. To steer clear of a holiday financial hangover, open up a home equity line of credit (HELOC) before the spending spree begins.

Flexible enough for Santa's bag

A HELOC is a second mortgage, a lien on your home that's taken out in addition to your first mortgage. It works just like a credit card: You're given a set amount of credit from which you can draw funds, and you don't pay interest on the loan until you've made a withdrawal. The beauty of the HELOC is that you only pay interest on the funds you use. If you overspend on gifts by $1,000, you only need to tap $1,000. However, if your spending has made your balance sheet look more like the red in Santa's costume, you don't need to go to the North Pole to find more funds.

The gift of low interest rates

Compared to credit card rates, HELOC interest rates are much more affordable. Although rates may increase, the interest you pay is tax-deductible, further lessening your net costs.

Let's face facts: With all the shopping frenzy, Christmas card mailings, and family gatherings, the holidays can be a financially demanding time. The last thing you need to worry about is bouncing a check. Take a preemptive measure and open up a HELOC. It will allow you to spread some holiday cheer without all the bill-paying fear.