Okay, let’s see how you might play the debt game. Read the following situations and see what you’d recommend based on what you know about debt.

(1) You need $4,500 now. It is an emergency. What will you do? What if it isn’t an emergency how might this change your strategy?

Ideas: An emergency requires fast action. If you don’t have the cash, you need to get some, and credit cards or a personal loan from an FFA would likely be the source. If it is not an emergency, sell something you own of that value or get a part-time job for a month or two.

(2) You need over $5,000 within four weeks for an important opportunity but not an emergency.

Ideas: Work a second job, sell your car for a while and take public transportation.

(3) You know you’re going to be late paying a loan.

Ideas: You see where you can find the money to pay the loan immediately; you call the creditor and say you’ll be late on the payment; call the creditor when you pay the bill or when you discover that you will not make the date you promised to pay.

(4) You are preparing to buy a home.

Ideas: Study the housing market in your area; ask friends about their agents and if they would recommend her to you; get to know an appraiser to find out the inside opinion on preferred areas of town; get preapproved for a loan; shop the best mortgage companies.

We all play the debt game because there are times we must borrow to meet challenges and take advantage of opportunities. The important thing to remember is that as long as you are controlling the amount of your debt and paying it off in a timely way, you are ahead of the game.

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