Unafraid Of Credit But Scared As Hell Of Debt
Saturday, June 30, 2012, 2:00 AM | 2 Comments
Probably the single most public financial health achievement of the 20th and first decade of the 21st century is the increase of the Americans’ debt life span.
Now as that achievement helps raise the proportion of debt to income around the U.S., what once seemed an unalloyed blessing is too often regarded as a burden – a financial burden, even a social burden.
Mortgage debt and student loans have increased proportionately to the national debt. Every kind of debt has increased faster than a speeding bullet, except perhaps credit card debt.
Most of all, there is no cop when you need one to slow down the U.S. National Debt which knows no speed limit.
Defeat from debt is unacceptable…
To assume defeat as individuals and throw down our shields in the face of debt is to accept shameless defeat which can be considered un–American.
The whole debt shit Americans keep stepping into calls for some understanding of credit and debt. We all know there are many benefits of credit as there are many costs of debt.
We as individuals ought to use credit more responsibly and not to waste it so we are able to keep the cost of debt to a more manageable level.
Americans are happy when they get credit but when unable to repay the loan, it leads them to miseries and eventual financial death when collection agencies take over their debt.
It’s the working and lower middle class who bear most of the cost of absorbing debt to the point of living a miserable financial life in the U.S.
What can be done?
On a national level, there are ways to educate the public in managing credit and debt. We must understand and keep in mind the very basics of credit and debt, and that is that we ought to return the debt to its original owner promptly and intact.
We ought to keep in mind and realize that we are renting money when we borrow it. Whatever we rent, we must return it to its proper owner. We never own that money.
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Research needs to be done on credit and debt and financial health changes across all social sectors that can be central to designing solutions to public financial health problems in the 21st century.
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Family finances – the beauty of credit but the ugliness of consistent debt – must be taught verbally and simulated practice in real life before students taste the realities of financial life.
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Major redesign of family fiances is needed to reflect a new emphasis on financial health preservation and prevention of debt, especially stinking debt, for every stage of life.
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Even during the presidential campaign, there should be some time given to family finances and advice given to folks who are heavily in debt.
In a Nutshell
You know that quote from Michelangelo – sculpting is merely and essentially the art of revealing figure in stone.
In personal finances, once a month consistently you chip away at the marble of debt and what is revealed is exactly what you thought you were going to find – a successful financial life.
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