In This Chapter
◆ Credit cards: buy now, pay later
◆ Car loans: the must-have accessory?
◆ 401(k) loans: robbing your retirement
◆ The danger of payday loans
◆ Medical costs can cause heart attacks
◆ Legal bills, alimony, and the IRS … oh my!
In the last chapter, I discussed the use of long-term debt to acquire “assets” that you would not be able to purchase otherwise. Short-term debt on the other hand is used to help you survive day-to-day. While its use is justifiable from time to time (buying a car so you can get to work), more often than not, the purchases are avoidable.
For many people, excessive or impulsive use of short-term debt can create a major roadblock to achieving their long-term goals. Hence, we tend to ...