Making a living for yourself can be very difficult. The modern job market is very competitive and automation may even threaten the job market even more. As people lose jobs or struggle through their lives, debt sometimes becomes inevitable.
Bad Debt
One of the major problems I have encountered with banks is that each bank thinks it is a business. The problem is, banks are businesses! What this means is that banks are very eager to 'sell' their product. Every time you open a credit card account, the bank ties another rope to you. The more debt you have the more you become tied to the bank...
Live without debt where you can! This is easier said than done because of the system created. To make a loan, people generally need a credit history. This means personal debt. The best way to build a credit history is to start with a phone contract. Avoid clothing accounts or other credit.
When life happens...
Part of living your life means that there will be times that you require money. Buying a house or putting yourself or kids through college may be opportunities where debt can be beneficial.
Sometimes people need to make some debt after losing a job. In these cases, try to use your debt or loan to make an income!
@business-trail There is a total sense of accomplishment when finally kicking that last little bit of debt to the curb!
that's some great advise !!
Yes you must use your debt to make income or you will be a hard time to get ahead of the curve. I wrote about compounding interest that speaks on this also. Great post!
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The American credit score is the craziest thing I've ever seen. The higher your score, the more debt you can consume.
The wealthiest people I know spent their lives avoiding this liability like the plague it is.
I am deeply grateful to say that we paid our children's tertiary studies without having to incur debt. Although they did not really do too well, I am altogether proud of them. I know that they will use whatever we were able to give them, to their own benefit, and to the benefit of their loved ones. Who knows, maybe in future they might even repay us with a special spoil...
Finance payments leech life out of cash flow. It impairs your ability to reinvest.
My recommendation for those new to debt is this: bet on yourself. But if you fail, don't double the stakes. Be patient. You have time.
Realize that you lost, get a job, pay down the (currently manageable debt) you have, and prepare for another at bat.
It sucks. I know. I am currently getting ready for another swing.
a huge problem is when living in debt you try to save your money but the cost of living goes up and your income stays flat or decrease, if you save in something other than the dollar you can make insane gains if you did your savings in bitcoin.
https://steemit.com/steemit/@goldsilverguide/losing-money-by-saving-money