Jack and Jill just bought a house. They make $50,000 per year. Fortunately, they found the perfect home. It has:
1. Five bedrooms: a master for the two of them, one for each of their three children, and a guest suite for their many unexpected guests.
2. An indoor swimming pool. Jill is trying to lose weight, and an indoor pool is a convenient alternative to a gym membership. Because they are in a northern climate, it needs to be indoors so it can be used in the wintertime.
3. A spacious home office: Jack is trying to start his own business (and rejuvenate the economy), so he’ll need sufficient office space to do so
4. A 5 car garage. In the future, they’d like to have room for a boat. Plus, they each have a car, and two of their children are driving age, so they’ll need their own space, too.
5. A professionally landscaped yard, 20 acres worth. Jill likes to garden; it’s therapeutic. Plus, a large yard is healthy for the children.
The cost of this home? $2.2 million.
Today their mortgage is due, but they don’t have the money to pay it. A crisis is looming! Clearly, their credit limit needs to be raised. You see how it is not possible to reduce spending to bring debt back under control, right?!!! Surely you don’t want this family of 5 to go without a roof over their heads, or take away Jill’s health plan, or Jack’s small business!