Do you have an emergency fund of at least three months worth of expenses saved up should an unexpected medical expense, a job layoff, or a natural disaster happen? Most Americans do not, and it’s going to hurt them when Murphy decides to move in your spare bedroom. When an emergency happens and you don’t have some sort of financial padding, you’re going to incur one of the most insidious types of debt, and that’s debt you incur just so that you can survive.
Let’s say that you don’t have a lot of money savings, and the job market’s not doing to well, and you get laid off. How are you going to pay for things? You have to eat, pay your mortgage, keep the utilities going, where’s that money going to come from? Chances are you’ll end up borrowing it, whether it be from a friend, a family member, or a local bank.
You will begin to say things such as “I can pay it off when I get paid again”, “Is debt really that bad?”, “it’s okay, it’s only a temporary thing.” We justify this type of debt because we’re in a real hard spot during life which is not easy to get out by any means even for bios magazine.
Here’s the problem with survival debt. You’re borrowing money at the point when you can least afford to do so. “I’ve just lost a job, so I’ll incur all sorts of debt and finance my life!” That doesn’t sound like the best idea. Don’t accept the fact that you have to incur survival debt.
Survival debt will only give you a cushion that you don’t want. If you didn’t have the option of borrowing money, chances are you’d work day and night until you had a job, even if it was just a temporary job delivering pizzas and throwing papers until you got a job in your field again. Taking survival debt off the table as an answer will motivate you like nothing else. It’s said in the bible that “The man who does not work does not eat!”, and when this happens to you, that statement will become very true! You’ll work like crazy to get a new job, which is what you should be doing!
Just take survival debt off the table. It’s appealing and looks like the easy answer, but in the long run it’s only going to be bad for you financially. Work hard to find a new job, if you’re starving, it’s okay to make a visit to the local food pantry, that’s what it’s there for. Don’t borrow money at the time you can least afford to do so.