What if you owed someone a substantial amount of money and were making annual payments each year to pay down the debt. However, every year, year after year, the amount you owe and the annual payments you must make increases — significantly.
Now, what if, at the same time, you owed someone a separate substantial amount of money but there was no schedule to pay it back. You were making some intermittent, smaller payments when the lender periodically asked for them, but there was no plan in place to pay off the entire debt. And, like the first debt, each year, the amount you owe increases — significantly.
Meanwhile, you’ve got other essential expenses — car and house payments and maintenance, child care, food, clothing, medical care, etc. But, with those large debts continuing to increase, you are finding that you can’t afford to pay for some or all of these essential expenses. You could try to borrow money to pay for them but, because of those troublesome and ever-increasing debts, your credit score is low (and is at risk of being further lowered) and the only loan you can get, if you can even get a loan, will bear interest at a high rate.
Author(s): Mark Crow
Publication Date: 29 March 2021
Publication Site: VT Digger