I have heard 2 different financial stories over the past couple of days. One of a home mortgage refinance to take advantage of low interest rates, the 2nd about income loss and struggling monthly payments. I offered my advice on what I would do if I were in their situations. I also presented some information / resources for review. The mortgage refinance will be taking a drop in APR, but not in term. They will be saving money each month short term, but extending their number of years in the long run. The loss of income is a single income family with their backs up against the wall. The loss will force changes in living arraignments, school etc. if it cannot be recouped. The spouse has yet to take on a job to make this family a dual family income to help counter the lost income.
These stories frustrate me, because these might have been the same type of choices I would have may 6 months ago, but I believe I know better now. It also frustrates me because these stories are friends making what I think are bad financial decision. Obviously the refi has less impact then the loss of income because its just adding years of debt repayment compare to possible home loss. I'm hopefully that both stories have happy ending.
Have you ever given advice to someone who didn't realie they were making a bad decision?