Debt is a giant problem.
This is true for the government. It’s true for individuals. This is a big problem.
People have come to believe debt is just another way to spend money. You hardly ever see somebody save the cash to buy a car or a large appliance. What happens?
Debt Becomes Your Master.
You buy things using credit. At first it is kind of empowering…a little bit of a rush. You enjoy your new car, TV, dishwasher, furniture or whatever “you had to have” right now. You tell yourself you are going to spend like this just this once. Before you know it, the debt piles up.
Now your paycheck goes to debt payments (after the government takes its cut).
It doesn’t go to savings, investment or regular home & auto maintenance. The more debt you have, the less of your paycheck you own. The debt (and the lender) become your master. There is less cash for life’s little pleasures and life’s little problems.
Eventually little problems become big problems.
This can spiral out of control and make your life a mess. You force yourself into servitude. It’s a very unhappy thing.
Your life is no longer yours. You have become a slave to your debt.
(Stay posted. Reducing / eliminating debt will be a topic we discuss future posts)