Seasonal income fluctuations are a common problem for many self-employed workers and workers dependent upon bonuses.

A HELOC loan can be an effective, low-cost tool to help cover temporary cash shortfalls. As you need funds to supplement your income during lean months, you draw on your HELOC loan making only the minimum payment each month. You then repay the borrowed funds when your busy season arrives.

Many people in this type of situation rely on credit card debt to smooth out their cash flows. However, a carefully managed HELOC loan will almost always be the less costly, more effective method to address this issue.