Conventional wisdom tells us, “neither a borrower, nor a lender, be.” Conventional wisdom never met the coronavirus. In one way or another, it has made conventional fools of us all. We are in the process of rewriting the rulebook. Savings accounts, retirement investments, college funds – these are the artifacts of prosperity. They are rather less meaningful when scrounging for one’s next meal.
The number of delinquent mortgages is five times higher than it was at the beginning of 2020. Despite signs of improvement in September, the number of people in arrears is still quite shocking. Emergency measures by state governments placing moratoriums on evictions is all that has stood between millions of homeowners and homelessness. Those moratoriums are coming to an end.
Some of those homeowners have fully funded insurance policies, IRAs, boats, and other real property. They have been hanging on to assets for fear of being without a safety net, or the dread of going without treasured luxuries. Somewhere along the way, they have lost the plot. It is time to use those resources you have socked away for a rainy day. Just look outside. It’s pouring.
If you don’t have any of those assets, it’s time to consider a loan. If you are worried that your credit has suffered too much to qualify, go for one of those loans no credit problems will hinder. During times of emergency, it is good to know there are emergency funds available to just about everyone. Teetering on the verge of homelessness is definitely a qualifying emergency. Here are some other reasons a loan might be in order:
Making Vital Repairs
Some household repairs require more than what happens to be in a cheapskate’s toolkit at any given moment. Unless you are a professional contractor, you shouldn’t be attempting a roof replacement. Only qualified electricians should be doing the work or rewiring the home. These repairs are critical. And if you don’t have the funds to pay for them, you have to get a loan to cover the cost.
Attempting to do the job yourself could be costly in more ways than one. Perhaps the worst thing that happens is you complete the task feeling good about having saved a ton of money and thinking that everything is okay. In reality, everything is not okay. Some problems from faulty repairs are not immediately obvious. Down the road, it could produce an even bigger and more costly problem than the one you initially had. When it comes to vital repairs, you have to do whatever it takes to get the job done by a professional.
Taking Advantage of Big Savings
Only you can decide what big savings are. However you define it, you would be unwise to pass it up. If there was something you were going to buy in a few months anyway, you should consider buying it sooner if it is offered at a considerably lower price than usually. The inability to buy when a product is priced at its lowest point is an example of opportunity cost.
You can take advantage of the opportunity by getting a quick loan and buying the items while the price is right. This is a smart move provided you do not take too long to repay the loan. If you end up paying more in interest than you would have paid for the item at a higher price, it is a bad move. But if you were going to buy the item within the next 30 days anyway, you could save hundreds with a loan.
When your health is at stake, it is a no-brainer. Get a loan. Insurance might not cover everything you need to stay healthy. Many people have no form of health insurance at all. If you have been exposed to Covid, you need to be tested. If you are prescribed medicine that is not covered, you need to purchase it. If you or a family member is injured, you need to take care of it. Your savings and good credit are meaningless if you don’t have your health. Borrow as often and as much as it takes to live and fight another day.
No one wants to be in debt. But some situations call for judicious borrowing. Paying your delinquent mortgage, making necessary repairs, saving hundreds, and maintaining your health are just a few of them.