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A Wake-Up Call Without the Trauma

Imagine a hypothetical guy who lives a responsible financial life. He’s focused on meeting his obligations, even though he doesn’t have a big cushion when it comes to his take-home pay. Things are tight. He’s not quite living paycheck-to-paycheck, but it’s close. Then one day, an external shock completely outside his control occurs, and it affects him negatively.

Through no fault of his own, he ends up missing a couple of bills. These missed payments hit his credit score, and it drops 50 points. What happens next might surprise you.

Read the rest of the article on The New York Times.

 

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