E-mail to Suzie about her plan to take out loans

Hi Suzie,

 

I’ve been thinking about your plan to take out loans to pay your rent after you move. Here’s my two cents’ worth.

 

I think if you do that it will bite you in the ass. Very hard. I really, strongly urge you not to do it.

 

Unpaid loans give the lender the legal right to harrass you … probably a lot worse than your current boss does right now.

 

Also, if you are talking about “educational loans” you can never get rid of them: they stay on your back even if you declare bankruptcy.

 

You talked about taking out the loans and then getting rid of them by joining the Peace Corps. But think a minute: if you take out a loan with the INTENTION of not paying it back, that’s not a loan. That’s a gift. For somebody who wants to be independent, it’s the same as getting bailed out by your parents. Only getting bailed out by your parents is more honest, because the banker doesn’t KNOW he’s not going to get his money back when you take it from him.

 

What can you do instead? I have one idea.

 

Right now – today – you work Saturday and Sunday, and for that you get food and housing.

 

That means if you get a second job Monday to Friday, whatever it pays you is PURE PROFIT. You don’t have to spend a dime. You can save it ALL.

 

So I suggest you do that for a while. Not forever, but long enough that you can build up savings. (This means putting your classes on hold for a little while … probably a few months.)

 

Then when you have enough savings, you can move … plus pay first and last month’s rent in the new place … plus cover your new rent out of savings while you go back to school.

 

Or whatever. Maybe you’ll have a better plan by then. But once you have money in the bank, you are way stronger. For anything you want to do.

 

Think about it.

 

 

All the best,

Hosea