The piggy bank just sits on the shelf, more a decoration than any-thing else. Jeremy and Tricia have all the toys, their kids lacking nothing.
The mortgage payment made it easy to buy what they wanted. The rate on the new loan was only 3.75 percent and it was good for five years. With a payment of only $1,625, there was room to upgrade one of the cars, adding another $300 per month. With a lot more room to borrow (at least from the bank’s perspective), the great credit card offers came rolling in. Before they knew it, they owed $10,000. A mortgage refinance took care of that; along with some cash out and a great rate of 4.25 percent for another five years, their payment was only $1,900.
But then the credit card cycle kicked in once again. By the time they had $15,000 racked up, some new offers came in to transfer their credit card debt from one bank to another—with interest at 5 percent for the first three months—right through the end of sum- mer. Another $7,000 was tacked on after a trip to Hawaii, a getaway to the Bahamas, and back-to-school shopping.
The payments and the cost of upkeep for everything they had acquired crept up on them. It became more difficult to make ends meet, and the credit card balance started to grow each month to fund the shortfall. Before they knew it, they owed $30,000 in credit card debt and had maxed out all that could be borrowed against their home.
Then Tricia lost her job and Jeremy’s bonuses got cut. Now they’re fighting for a mortgage loan modification and have signed up for credit counseling.
No retirement savings. No college savings. But the kids have nice clothes and the latest video games in the entertainment room— right where the swine sits on the shelf. He’s a bit dusty, but if he could get up, he’d shake it off and smack a few folks around for being forced to sit there and watch everyone party while he starved to death.
