We read an argument on a public finance blog of a 20-something recently. It went something like this: I’m a good credit risk, even though I have a lot of consumer debt. I’ve never failed to pay back a personal loan. Therefore people are being selfish not lending money to me.
If you think there’s nothing wrong with the above argument, here’s something we would like to say to you. THE WORLD DOES NOT REVOLVE AROUND YOU. Sometimes people would prefer to keep their own money and not lend it to you, whether or not you’re a good credit risk. That’s their business.
Mature adults do their best to have emergency funds and low enough expenses so that they don’t have to borrow money from others. It might be one thing if you had a sudden medical emergency, and even then, generally working a payment plan out with the hospital is the best idea (since they will usually cut the balance), or a temporary car problem making it difficult to get to work… but you have consumer debt and you don’t want to live on rice and beans while you’re getting rid of it? Or you want to buy a house but haven’t saved a down-payment? Suck it up.
We get these kinds of students in class on a pretty regular basis. At least we’re not related to them!