The average American has 16K in debt, down from 35K in 2008. The ability to borrow money is important in all economies, but borrowing more than you can pay causes all kinds of problems (as the various debt crises around the world expose). How much debt is okay? How much debt is too much? How do you decide for yourself when it’s warranted to go into debt to achieve something? What’s a story you can share about borrowing something, perhaps money or time, from someone else?
To me it’s all right to go into debt if it’s a short-term kind of debt. By that I mean, you should get a loan from someone to pay bills if bills will become due and you don’t have the money. If not borrowing the money sets you on the road to more bills or into more debt, than the one time loan is a good thing. And the borrowing sets you on the road to recovery.
I don’t think you should borrow money if you’re in debt over your head and there’s no way you’re going to get out of it anytime soon. Borrowing more money will just get you into a deeper hole. A deeper hole will only lead you into bankruptcy. And filing for bankruptcy will limit your ability to borrow money. Bankruptcy will also be stated on your credit report for at least seven years. I don’t know if it’s still seven years. I haven’t really kept track of bankruptcy laws. But filing for bankruptcy is not a good thing, plus there’s the extra cost of hiring a lawyer.
As to a story I might have about getting into debt, I prefer not to discuss any problems I have with debt. That’s between me and it.
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