We've been discussing the ugliness of our nation's debt situation recently.
Thus, it's timely to ask what we should consider before assuming additional debt individually. After all, we know ourselves better than anybody else can possibly know us. Besides, we'll be responsible for repaying the loan. With interest, of course.
So let's not act in haste. Instead let's be sure and take enough time to study the situation completely. If we proceed cautiously, in the end we may elect to stay put, and that's not a bad place to be.
5 questions to ask before taking on more debt correctly observes that hope is not a workable repayment plan. The short article is well written, simple to understand and recommends that we answer five straightforward questions before assuming more debt.
Accordingly, before embarking on something we can't easily undo, let's adopt a "plan for the worst and hope for the best" approach to borrowing.
Adopting a premortem position, let's ask "what could go wrong?" before taking on the loan, even if the lender is anxious to make the deal.
After all, we're on the hook to pay it back, regardless of what future bad luck we may encounter.
Thanks. Bob.
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