Live a lavish lifestyle – Maybe you pay way too much for your rent or mortgage. Perhaps leasing that fancy car was not the best plan. It feels good to have new things to wear each week, but is it practical? Your living expenses are supposed to fit under the umbrella of your income. This includes basic living needs and all the bills to support it. Do your monthly expenses fit under this umbrella or do you live on credit cards to make it happen?
Ignore your debt – Not sure how much you owe on all your credit cards? How many cash advance online loans have you used in the last year? Did you push your student loans into forbearance for another year? You can live to ignore your debt, but eventually it is going to show its face to you. It won’t be pretty. Credit limits will be gone. Interest rates will soar. Student loans will grow bigger each day with added interest. How long can you not pay off your cash advance before it eats up every paycheck? Pretty soon, even a direct lender would not service your need for cash. Then what?
Home Equity Spent – You took a loan out against your home. Your child had a marvelous wedding or to pay for college. The added bill payment each month has become a struggle with everything else under your income umbrella. You know that your house is at risk if you don’t pay this bill, right?
Borrow from Retirement – The money came in handy. Hopefully it was used for something necessary like property taxes or to pay bills between jobs. Early withdrawals could hit you with increased tax liabilities. How are you going to pay for that?
Student Loans – Can you afford to take out a PLUS loan for your child’s education? Will you still be able to put funds into your retirement account? You are responsible for this payment now. No one wants to see their child drowning in debt, but you don’t have to kill your finances either. Let them take out the loans and then help them with the payments without hurting your own finances… unless of course you do want your money problems to compound.
Delay Delay Delay – This plan of action works best as a soccer defenseman; with your finances, not so much. Haven’t started a savings account yet? Never even thought about retirement? The more time it takes to begin, the less time your money will have to work for you in your favor.