1st big debt late in life

[dallas27]

I think l am like many others here, allergic to debt. Never had any beside the house, and that first car, but only for a few months.

But I wonder as I age, what will happen if a sudden sickness or problem plunges me into a large debt, will i even know how to cope with that situation.

Has anyone else here lived a debt free life, then circumstances put a large debt burden on their shoulders? How did you handle it? Was it a mental adjustment? My concern is that I have never lived with debt, it may stress me out and i might make poor decisions.


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[Rick_Head]

I wouldn't sweat it. If you don't have the assets to avoid it or the income to repay it, no one will give you that big loan.

Sometimes, I dream of dying with many millions in debt. It means I got to enjoy life on some other fool's dime.

 

[Major Tom]

Sometimes, I dream of dying with many millions in debt. It means I got to enjoy life on some other fool's dime.

I don't. I'd rather enjoy my life with money from my own savings and investments.

If I borrowed money that I didn't repay, I wouldn't think of the other party as a "fool". Rather, I'd be thinking of myself as a dishonest borrower.

 

[jerome len]

Usually those that are debt free have also retained assets......house, 401k, savings. Why worry about it? My mother used to say, "I worried about not having shoes until I met the man who had no feet"........I"m a worrier like you, but no one can predict the future.....we should prepare for it and then enjoy the life we've built. And, yes, I've had heavy losses, but I worked my way out of them and moved on.

 

[ArkTinkerer]

Think of it as "buying" money. You are paying them for the use of their money.

As to whether you can pay it back--a good lender considers this. Either they have insurance, you have assets, or they consider the risk in the interest rate. If they have none of these things, then yes, you are taking advantage of a fool.

Medical events before you die you have less control over. You can carry medical and/or life insurance payable to your estate if you wish.

My frame of mind, assuming I outlive DW, is my last check should be to be cremated and it should bounce. My boys can buy their own beer for my wake.

 

[flyingaway]

How could you get into a huge debt when you have all types of insurance?

 

[imoldernu]

A narrow escape...
At age 53, I was in the third year of building a new tech based signage business, planning to expand to franchises similar to "Signs Now"... which operated in my area, but was behind me in planning and expertise and customer base, and had not yet considered franchising or attending to major corporations.
I was about to expand, using all of my savings, my corporate savings plan, a second mortgage and the biggest SBA loan possible... A business plan for ten years growth.
Colon cancer diagnosis changed everything. It would mean leaving DW with an unpayable debt and no future except Social Security.

Yeah... scary. The plan was a few weeks from execution, when the diagnosis was made. the health part turned out ok, with a 6 month recovery... but the business option was out. This led to my best decision ever... to retire poor and enjoy what life was left. That was 25 years ago. Poverty never struck. Luck or a guardian angel provided for the happiest life we could imagine.

Keeping on in the business wasn't an option, and I neither wanted to go back to my old profession, nor to struggle without the necessary capital to expand.

Coming to the decision point is an individual thing. I don't like trying to give advice, except to suggest that if and when a big decision has to be made, the effort has to be 100% and as well researched as possible.

 

[JoeWras]

Well, if you do it, do it big and leave a memory.

Thomas Jefferson was famous for this. He was in debt, BIG, late in life and finally death. But he left Monticello. His heirs got nothing. Everything had to be sold, including Monticello.

 

[outdoorgirl02]

Imoldernu, what a story. Thanks for sharing.

 

[mistershankly]

Imoldernu, what a story. Thanks for sharing.

+1

 

[NYEXPAT]

Sometimes, I dream of dying with many millions in debt. It means I got to enjoy life on some other fool's dime.

We all have/will , It's called the Federal Deficit , Party ON!