Borrowing money from friends/family has always been an uncomfortable topic in our family. My dad managed to spin it one time when he and my mom bought our first house back in the early 80's--they were both starting out their practices as physicians, so they didn't have a whole lot of cash flow. The house cost $75,000, and they ended up borrowing about $10k from my dad's brothers and sisters--spread out among 8 siblings makes it a bit easier. My dad always bragged about how he paid them all off within a year.
When Margot and I our house, on our not-as-luxurious-yet-still-comfortable salaries, we did so without borrowing any money. We cashed out our retirement accounts, since it was our first purchase, and scrounged up enough savings to put down enough of a down payment. It was amazing what a common goal forced us to achieve! We managed to live off of one of our salaries, and put away the entire other paycheck each week. Of course there were moments that payday cash advance loans would have helped us make it to Friday, but in the end we made it work. Thank god for overdraft protection.
One thing that has become ever so popular is a cash advance. The whole idea is that you borrow the money for a short term, pay off what you need to with a high interest loan and then when you get the money - pay off the loan. A great website that discusses the benefits and gives great information is PersonalCashAdvance.com.
I'm proud of how we were able to purchase our house without the drama of borrowing from family.
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