Let’s be honest, no one wants to take on debt. Most of us grew up hearing that debt is something to fear, avoid, or feel ashamed about. But in today’s economy, the math doesn’t always work out neatly. Vehicles, housing, and childcare all cost more, while wages haven’t quite kept up. Sometimes, debt isn’t a failure — it’s a bridge.

The Reality No One Likes to Talk About

When expenses pile up, whether it’s the holidays, a round of kids’ extracurricular fees, or essential home repairs, we can find ourselves in a bind. These moments are what I call “heavy spend seasons,” when everything seems to hit at once and your budget simply can’t stretch any further.

You can cut corners, of course, but some costs are unavoidable. And when that happens, using debt strategically (and responsibly) can make the difference between financial chaos and controlled breathing room.

So What’s the Smart Way to Use a Line of Credit?

Think of a line of credit as a flexible safety net rather than a spending tool. It gives you access to a set amount of money (say, $10,000), but you only pay interest on what you actually use. So if you withdraw $1,000, you’re only charged interest on that $1,000, not the whole limit. The interest rate is usually much lower than what you’d pay on a credit card, and there’s no built-in due date the way there is with a statement cycle. You can pay it back on your own timeline, as long as you meet the minimum interest payments that are due monthly.

In contrast, credit cards tend to have higher interest rates, which makes it easier to fall into a revolving balance trap. They’re great for earning rewards and everyday convenience, but they’re not always the best tool for larger or longer-term expenses. A line of credit gives you breathing room, but it still requires discipline, structure, and self-trust to use responsibly.

Here’s how to use it wisely:

1. Plan Ahead

If you know a heavy spending season is coming like the holidays, summer camps, or back-to-school, take time to calculate the total cost before you’re in the thick of it. Map out what will come due, when, and how much you might need to borrow. This small act of planning turns borrowing into a conscious decision rather than an emotional reaction. It’s the difference between “I can’t believe this bill just hit” and “I’ve already made space for this.” By anticipating the cost, you give yourself time to explore alternatives: can you save part of it in advance? Can you time your borrowing to minimize interest? Planning isn’t about perfection. It’s about staying grounded when life speeds up.

2. Borrow Once, Repay Fast

A line of credit is meant to be a bridge, not a lifestyle. When you do use it, set a clear repayment plan right away. For example, if you borrow $1,500 for your child’s hockey fees, divide that into equal monthly payments you know you can manage, and stick to it! The goal is to treat the borrowed amount as temporary income, not free money. The faster you repay, the less interest you’ll owe, and the sooner you’ll free up that credit for future emergencies. Think of it as a revolving door you control: open it when you truly need to, and close it again as soon as you can.

3. Track Your Balance Weekly

Debt becomes dangerous when it becomes invisible. Make it a habit to check your line of credit balance every week, even if nothing has changed. This keeps you connected to your numbers and reduces the risk of “out of sight, out of mind” spending. Seeing the real-time amount and how your payments chip away at it can be motivating. It turns repayment into progress. Plus, it prevents you from mentally categorizing the available balance as extra money you can dip into whenever you feel stressed or impulsive. Awareness is the foundation of responsible borrowing.

4. Automate Your Payments

Even the best intentions fade when life gets busy. Automating your payments, even small ones, keeps you consistent without relying on willpower. Setting up a recurring transfer from your main account ensures you’re always paying something toward your balance, which helps you reduce interest faster and maintain positive credit history. You can always add extra payments when you have a surplus, but automation ensures you’re never skipping a month. It’s one of the easiest ways to stay in control and build financial trust with yourself.

Common Situations Where It Might Make Sense

A line of credit can be helpful for:

• Covering large, time-sensitive costs like vehicle repairs or medical expenses.
• Managing seasonal pressure points, like holiday spending or school fees.
• Funding career or education-related costs (such as apprentice supplies or certifications) that will likely bring a future return.

A Reality Check — and Some Compassion

Here’s the truth: you shouldn’t have to take on debt to live a decent life. But sometimes, life doesn’t give you time to wait for perfect conditions. If you find yourself needing to borrow, it doesn’t make you bad with money. It makes you human. What matters most is what happens after: your plan to manage and repay it.

Because financial health isn’t about avoiding every mistake or setback. It’s about having the right tools, strategies, and mindset to navigate them responsibly.

If you’re looking for a flexible, lower-interest option, ATB’s Essentials Plus offer has a line of credit that could help. It’s there to help you stay afloat, not sink deeper.