|
Home
Loans
While it's far from ideal to borrow money, if you do need a loan you might
consider the following sources:
-
HOME EQUITY LOANS. Interest rates often are
reasonable and the interest is tax deductible. Just remember, you're putting
your home at risk.
-
INSURANCE. You may be able to borrow from the
cash value of your life insurance policy.
-
LOW-INTEREST LOANS. Some banks offer
low-interest loans or credit lines for adoptive parents.
-
PRIVATE GRANT AND SPECIAL LOAN PROGRAMS.
Adoption loans, both home equity and unsecured, may be obtained through the
National Adoption Foundation. They also award grants to needy adoptive
parents.
-
RELIGIOUS ORGANIZATIONS.
-
RELATIVES.
Two other possible sources you may be tempted to
use are credit cards and loans on retirement accounts, such as 401(k)s and
profit-sharing plans. Credit cards are an easy source of cash, but typically
charge high interest rates. Loans on retirement plans offer somewhat lower
interest rates; however, if you lose or change jobs and cannot repay the loan
within a short time period, the loan becomes a taxable withdrawal. In addition
to income taxes you'll have to pay on the withdrawal, you'll also have to pay a
10 percent penalty if you're younger than 59 1/2. Most financial planners
recommend that you not tap these sources unless it's absolutely necessary.
The decision on whether to take out a loan can be difficult and has serious
consequences for the entire family. It's important to maintain financial
stability. Dipping into future retirement savings or running up credit card debt
can add to your financial stress and family stress in general, as well as
throwing your long-term goals and planning off course.
|
