Your paranoid friend is the exact opposite of the caller who thinks he can live off debt if something bad happens. The simple solution to his money worries is knowledge.
He can ditch the apartment if he runs out of work and live at his house. He can calculate bare minimum monthly and annual expenses for his house and a barebones lifestyle. Divide his $50k by his expenses, and you will probably find he can live for ~2 years with that sort of cushion, and that he doesn't need to worry so much about being unemployed for a year if that's in his future.
Of course, he could pay off the credit card debt and have a larger net return on his cash, even if safe money market accounts only pay <2.5% these days.
I pay my credit card off every month, so I never carry a balance. I just received a notice that they are decreasing my available credit limit by $10K. Granted, I never intend to use that large of a line of credit, they gave me a $22K limit when I was a college student. 10 years later, they realize that I'm not spending the way they thought I would. My question is should I be worried about my credit score and how will this decrease affect it, if at all?
Would you please tell me which is thr trusted website to go to get an anuual free credit report? Thank you.
I have a friend who I believe is obsessed with not having enough money to live. He has $50,000 in the bank, a mortgage, some credit card debt and rent on an apartment he uses during the week so he does not have to commute the hour plus home. He has work-union work on films and is always afraid that the work is going to run out but so far it has not, for the past 20 some years. Is this worry neurotic? He is constantly thinking he is close to being homeless. His anxiety is getting in the way of his health and his relationships. What kind of a cushion does someone need?
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