Huge debt is the kind of modern burden that faces millions of people in America alone. Debt has unavoidably become a life’s companion for all people who borrow. I believe that those individuals who borrow huge amounts are either lightheaded or very convinced of their ability to repay the money with interest to their bank. If a person is employed, then he should be able to scrape enough money for his monthly savings. Financial researchers speculate that regular monthly savings of about 20 percent are exactly the part of one’s income, from which a person should be able to pay off his debts.
Debt is all the money you borrowed and spent on your yesterday’s necessity or want. It is very true that the debt can change one’s life for the worse, not for the better. It may even affect the whole life dramatically – the life with no pleasure of spending and saving. To owe money on a credit card is very common, as we no longer think of paying cash for our luxurious possessions in life.
Unfortunately, the generation that carried no debt at all is the forgotten past that would never come back. Even more, these days banks enjoy the whole freedom they have since no interest rates can be regulated by law. Literary, credit card companies are like monsters that grow bigger and bigger from increased rates, fees and late payments.
The big companies have become so smart that they lend money to everyone – the old and young, the rich and poor. To own a card is not exclusive, and the banks make profits, while their clients sink into the sea of debt. Credit card debt is a huge business for banks over the world. Since the debt is an obligation, banks and clients enter in a special relationship, in which debt is the priority that needs to be satisfied by all means.
I recognize that a long time debt is dreadful, although it has not affected me personally. Some of my friends have fallen into the trap of borrowing and since then have been struggling to find their way out. A first-time borrower may not even think of the likelihood that something might unexpectedly go wrong in his life. And usually banks are very sweet to sell debt to anyone. They encourage you to put aside all your doubts and trust them completely.
But why do ordinary people take the loans? The answer is they believe in building a bright future. The loans are taken for a living space; a college education and a car are the essentials in life. A person who is living a decent life should be entitled to them. The biggest disadvantage of all these loans is that they are a way too expensive. I think that it is still acceptable and reasonable to borrow money for the purpose. However, you must be sensible and critically evaluate your current situation and the possibility to pay back in the future. To conclude with, if someone has a bad balance on his credit card, this suggests that his money may not be correctly balanced.