How to get into debt safely

A couple that took out a big loan to start a family shares their strategy for how they did it.
2:54 | 04/01/21

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Transcript for How to get into debt safely
conversations. We move to make your money move all about taking charge of your finances, this morning we meet one couple who took out a big loan to start a family and their strategy. Rebecca Jarvis has that story. Hey, Rebecca. Reporter: Hey, George. Yeah, that's right. These are big decisions, when is the right time to take on new det and under which circumstances? This is the story of how one couple did it safely and are now paying it down. Meet Jeff and mark from los Angeles. Falling in love in 2011 married five years but the next step of growing their family huge financial commitment. It is a very expensive process. It can cost up to hundreds of thousands of dollars. We were ready to take that challenge on. Reporter: The couple taking out a $100,000 loan from sofiablying them one step closer to becoming parents. The proposition on taking on a big loan was pretty scary. Reporter: Never having any major loans before the decision to go into debt made with love and sacrifice. It was our family's journey of financial struggles which led us to be inspired to take this challenge on and take it on in a very thoughtful way. Reporter: This year overall personal loan debt reaching an all time high of $323 billion. Important when you're shopping for a loan to know the terms and ask the question, what is going to be the interest on this loan? That is the term on this loan? What happens if I can't make a payment, do you have some sort of repayment options or modification programs? And what is going to be my bottom line? Reporter: So Jeff sat down and made a financial game plan factoring in their annual income and monthly expenses. If you're going to take out any sort of debt I wouldn't want to see that be more than 10% of your take home pay. You really have to remember that you got so many other expenses. It's about being age to live comfortably in that monthly payment. Reporter: Their best advice to other, turn your planning on paper into action. We actually ended up putting away that money every month prior to actually getting the loan approved. Reporter: And that planning is key. Before you take out any new debts take a look at your budget. Make sure you have at least three to six months worth of expenses saved up for emergencies, once there to paying it down if you don't have that emergency savings account on the side, consider a hybrid approach where you're setting some money aside, George, then also targeting those debt payoffs, focus on the credit card debt. That is the highest interest rate debt, George. A lot of good advice. Thanks very much. For more tips on how to get into debt safely, visit our site,

This transcript has been automatically generated and may not be 100% accurate.

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