Should I raise a credit to cover the expenses of building resilience?

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melvinmaze's picture
melvinmaze
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Should I raise a credit to cover the expenses of building resilience?

We definitively have not enough money to prepare well for a crises. Does it make any sense to raise a credit to cover the expenses of building resilience? - It seems quite contradictory to me. For now, we confine ourself on expanding our social network.

kind regards to all, melvin.

land2341's picture
land2341
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Re: Should I raise a credit to cover the expenses of ...

Each person can only choose for themselves.

Reasons to:  if the entire thing goes FUBAR then you never need to worry about paying it back and you'll have the stuff.

reason not to:  Chances are good that TEOTWAWKI is a personal thing and you will still have to pay back your debts.  Being debt free and somewhat prepped beats being heavily prepped for the schumer hitting the fan and losing your house because you cannot pay your mortgage.  

We balance the two.  We are debt free except for the mortgage and have been prepping for years to varying degrees.  Bought land moved to more rural area built house that can go (mostly) off grid if needed.  That took years.  Now we are working on the getting off grid thing and storage....

It worked out when we had a sudden loss of income and watched our savings evaporate!  So we will stick to our plan.

Working on community and bartering paid off the best.

Full Moon's picture
Full Moon
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Re: Should I raise a credit to cover the expenses of ...

 No, NO ,and NO!!  Do not do debt to prep .   Down size ,sell , barter , and  yes build that community .      Use your talents and find  those who have the talents you do not .

  We did debt when my husband was laid off ...  even  put socks and underwear on credit .   They are holey and in the rag bag  and we are  still paying on them .   Debt is a mill stone around your neck ...  and there will be no year of Jubilee .

  Fm

Roundhouse's picture
Roundhouse
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Re: Should I raise a credit to cover the expenses of ...

Working on community and bartering paid off the best.

Best investment I have ever made, by far.  Living in the country is huge as well but knowing your neighbors, establishing relationships with them, knowing their strengths and weaknesses is far more crucial in the long term than a bunch of solar panels, PM'S and a shotgun (just my opinion, I have all of those things and much more).  I preach the "get out of debt" sermon to anyone willing to listen.

Downsize, simplify, and barter.  Sadly, even with all that, luck will probably be just as important but time will tell.

 

Woodman's picture
Woodman
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Re: Should I raise a credit to cover the expenses of ...

Welcom Melvin, you raise a great question I'm struggling with too.  Great advice by others above.  Building systems for resilency can cost time, money, and convenience depending on the paths you take.  Some paths also seem to build debt and complexity, which actually decrease resiliency and quality of life.  I'm currently trying to downsize the monster of "stuff" I've accumulated over the years.

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earthwise
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Re: Should I raise a credit to cover the expenses of ...

 

It should be pointed out that not all debt is created equal and neither are all preps. Clearly secured debt like a mortgage or a car loan is more troublesome than unsecured debt like credit cards. Credit card debt can be more easily discharged in a bankruptcy where the creditor has limited recourse. With secured debt you lose your house or car if you default. Likewise preps such as buying minimal food stores are far more important than buying things like precious metals or firearms. Therefore it's fair to conclude that it wouldn't be unwise to use some unsecured debt to secure some survival food if there was no other option, whereas it would be foolish to use a line of credit on your home to buy less important items. Debt is a tool and like all tools must be used judiciously and can be dangerous even deadly when misused. All situations are different. You must examine yours with all the information you can muster in order to determine the proper course.

EndGamePlayer's picture
EndGamePlayer
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Posts: 546
Re: Debt to Prep

We un-debted to prep but I would have debt'ed to prep if needed these items:

space for food (grow, store)

clean secure water supply

heat for winter (mostly would have done via extreme weather clothing / bedding / cooking)

low cost transportation - bikes and possible a motor on a bike (electric is nice but low distance)

After those items have been secured - all other prep items are optional depending on your needs and I would not debt to prep - BUT I do use them as a "savings account" using our expendable income to supply us with -energy (electric for communications first), expanded gardens, tools for skills without electricity / gas.

Oddly, once I secured the first list - I had more funds to secure the optional list so it all kinda worked out for the best. My third level list would include more of the optional to the point I felt it would pay me enough to be comfortable. My 4th level - then I would look at precious metals, cash for a fuel efficient car/truck and a few toy-type things.

EGP

Jim H's picture
Jim H
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Re: Should I raise a credit to cover the expenses of ...

Certainly debt should be looked at as something to avoid for the most part.  I have one example though from my prepping that I felt (and still feel) was justifiable;

Much of my long term savings is in a 401K, and I have no options for PM exposure through the 401K.  I therefore took a max 401K loan in 2009 and diversified my savings into PM's.. have been paying myself back (happily) since then.  As well, to the degree that one is absolutely certain that strong inflation, or even hyperinflation, is on the way.... debt will serve you well in buying things that you would otherwise have to buy with depreciated dollars later.  I would never encourage anyone to use debt for a leveraged investment of any kind.           

aggrivated's picture
aggrivated
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Re: Should I raise a credit to cover the expenses of ...

Hannah has a great point.  Some of us have money tied up in retirement accounts etc and would do well to free that up before inflation or govt intervention makes it unavailable to us.   But I strongly advise do not go beyond that and take on more debt.  Owning stuff requires time to enjoy, maintenance, store, or whatever, so inventory your stuff, decide on what is unwanted and then sell, barter to get what you need--especially for food water and other essential items areas. 

melvinmaze's picture
melvinmaze
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Re: Should I raise a credit to cover the expenses of ...

Folks, thanks for all your precious advice.
I took it around with me the whole day, and finally there are two things I'd like to respond:
I'd like to wish Full Moon all the very best. Hope you manage to repay debt and rediscover times of celebration. 'No, NO ,and NO!!', that's a clear statement!
Then, less important, I wondered if building resilience could be done as a community act. Has someone heard of a place where people stick together and create community-owned infrastructures; like energy or water supply? - Does it work out?

Thanks again,

Melvin.

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