Life isn’t always fair, and debt problems remind us of this fact. Debt is controlling, so make wise decisions to avoid this.
I’ve been in debt, oh yes, but I am thankful that it was a problem I fixed as soon as possible. However, I have seen other people’s debt spiral out of control at a fast rate. Debt problems for them were more like tsunamis, hitting hard and leaving few surviving options.
I watched them go down, and it took quite a long while for them to swim back to the surface. It was heartbreaking not being able to help like I wanted, in fear that debt would attack me again as well. Debt is contagious and can be used as a form of control like this.
How we are tricked into living with debt problems
Debt and the problems which come with it are manipulative. It’s society’s way of holding sway over consumers in order for more money to circulate.
I learned a bit about this in economics class during college. I was taught that if money didn’t circulate, the economy would fail. Yes, money has to circulate, and yes, we must purchase things for this to happen. And I am sure most of you understand this.
But, do we really have to get so out of control in this area? There are so many ways that debt becomes a problem. It becomes a manipulative beast. Let’s examine a few ways it works:
Consumerism can be devastating
While the world of economics thrives off consumer purchases, us, as consumers sometimes suffer greatly from them. As products are introduced, we desire them.
As others are getting these products, we grow envious. Sometimes, we understand that we cannot afford these products, but we find a way to attain them anyway.
Most of the time, we use small loans to acquire what we want. It can have good results or bad ones, all depending on how we use these financial tools. Yes, this type of spending also keeps money flowing through the system, but how does it affect national debt?
Yes, debt is seen on a grander scale. Debt as a national problem can affect, not only us as an individual, but also the world.
As we produce products to improve sales in fast food restaurants, for instance, we are putting a great strain on the production of livestock and farms. In other countries, which do not thrive on fast food industries, which means poorer countries, livestock and farms are used in more logical rates.
So, how does consumerism contribute to debt? When we want something, whether it’s individually or as a group, again, this brings us back to credit cards and loans. We often pay with money we do not have in order to purchase some things we don’t need or that we waste.
Paying the minimum trap
You now understand that debt is a major problem. Credit card debt is one of the worst kinds of traps for the consumer when misused. While credit cards can be beneficial, they can also be a seed that exacerbates one of the greatest debt issues. Here’s why.
Do you want something you cannot afford? Well, some people decide to wait until they have enough money to attain this product or service. Others, however, use credit cards to attain the product now.
This is how credit cards work. We purchase products and we pay at a later date. But of course, most of you already know the benefits of using credit. How credit cards fail is when payments aren’t made and late fees accrue, creditors turn to the Minimum payment trap.
While paying the interest gives you more time, it adds to your credit card debt. Some consumers have been stuck with this sort of debt for most of their lives.
Minimum payments help you temporarily get out of paying a huge payment on your past purchase, but it also pushes other fees into future regular payments. These fees grow until your debts are out of control.
Obviously, credit card debt is easy to understand, but it’s not easy to eliminate when the debt has gotten out of control. But will we stop making these unwise decisions?
Taking the loan route instead
While loans aren’t exactly like credit cards, they can bring about debt and problems in a similar manner. The worst action you can take with loans is by taking another loan to pay the first one.
As interest grows, loans for loans tend to make it almost impossible to pay what’s owed unless a great deal of money is shelled out to remedy the accruing debt. And some loans are necessary, like buying a home or car. This is much different than using loans for personal reasons like getting things immediately instead of waiting to afford them.
The real pain and the devastating consequences
One of the scariest things for me to consider as a consumer is the long-term effects with my own personal debt. Loans, such as education loans can also be debilitating and extremely controlling.
Did you know that a loan of $40,000 or more can seek payments for the rest of your life? It’s true. This is the predicament my own son is in now. This debt also affects me as a parent as well.
Education loans have become ridiculous and there are few ways to escape the debts they develop. A few options are available, but few remove the responsibility entirely.
You can win the manipulative game
As for loans, as I stated before, there are few benefits, especially if you are never paying a large amount of principle, and interest is eating up your payments. All loans aren’t manipulative, but they can still cause problems like this.
When taking out a loan for a home, you start to build equity, this is true. Over time, the value of your home becomes greater than the remainder of your mortgage, and you may be tempted to take out a loan – do not do this. Taking out a home equity loan may be a bit different than personal loans, but it can still trap you in debt.
Let’s do our part to reduce debt
Debt related problems have become national. We just can’t keep purchasing products, services and the like without severe repercussions. As we go into debt to resolve a debt, it becomes a never-ending cycle of destruction.
The sad part is there are more than a few options for society to control national debt, this control creates debt which lasts a lifetime.
The good news is, we can start individually. We can waste less, buy less unneeded products while still keeping the economic wheel turning. We don’t have to be underneath the thumb of society and it’s pressure.
All we need to do is take a look at other countries, countries which, in their simplicity, have learned to use products and services to fulfill a need and not so many wants in life.
Debt problems, yes we have them. However, if we can learn to avoid the manipulation and control of society, we can learn to reduce this debt over time.
Are you up to it? Are you ready to make a change? Yes, be wise, invest in improving your home and other possessions, but be wise to the tricks society uses. There are good and bad choices. We should be able to tell the difference now.
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