Texting and driving is bad. Driving a car that's worth less than the amount you owe is a close second. Your car depreciates immediately after you drive it off the lot. Without a big down payment, you will quickly become upside down on the car loan (owe more than the car is worth). So, if you buy a car and can't afford an adequate down payment, or if the monthly payment is a stretch, any change in your financial situation could put you immediately upside down and in default.
9. Pray for better terms
Using credit wisely allows us to buy items that we would have trouble paying for with cash, such as our homes and cars. However, if you can't qualify for a reasonable interest rate for a large item, don't just pray for help. Fix whatever credit problems you have yourself. Then you won't have to put your firstborn up for collateral.
10. Risk your home and retirement
The two most popular assets that people use for collateral to borrow against are their homes and their retirement accounts. Borrowing against these assets can put you in jeopardy. Do so only when necessary, and with a firm plan in place to pay the loan. Try to keep your mortgage loan to 80 percent or less of the home's value. Don't risk your retirement, because it will come whether you are ready for it or not.