Borrowing Your Way Out Of Debt
Filed Under Debt |
I was watching a television show tonight about home remodeling. A couple had purchased a home they could not afford and were struggling with the payments. They decided the best solution was to remodel the basement into an apartment and rent it out.
The designer said to the couple, “It’s imperative to do something with the basement in order to increase your income.”
He gave the couple two options, with number 2 being more expensive than the other at $30,000. He asked them to ponder the solutions and the wife came back and said, “I think we’re going to jump in with both feet and pick option 2!”
Everyone was so excited about the plans, the remodeling, the future rental income. Oh happy day!
Funny how nobody talked about the debt. The couple was already in over their heads with the initial mortgage. They admitted they didn’t have any savings to they were going to have to borrow the entire $30,000 to do the remodeling project – all for the sake of increasing their income.
This is supposed to make sense? You’re living above your means, so the best answer is to borrow more money? You cannot borrow your way out of debt!
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Another way to solve the traffic problems of this country is to pass a law that only paid-for cars be allowed to use the highways. Will Rogers
