Debt, a fear that many people have. Also a reality many people have experienced throughout recent years, more so than ever before. Credit card debt, debt from student loans, debt from being unable to pay bills, taking out loans to pay for a house, you owe this and that and some more right here. Each paycheck is being funneled in to pay off debt, every penny you earn, as you slave at a job. Debt is a never ending horror show. How to stop the cycle of debt?
Many people have come to the very real conclusion that the foolish mistakes we make in our youth is something that will follow us right into our adult lives. That much is very true with debt. Many accumulate a huge amount of debt on credit cards when they are young and naive. They think that they will be able to pay it back and the temptation for the new cool item in our life is too much. Yet, we stand back years down the line and keep paying off money.
In many cases, debt is caused by the vice of not being able to stop ourselves from having the finer things in life. However, that is not the only reason debt starts. People fall right on hard times, they have a poor handle of their finances and are unable to budget. They take out massive student loans without bothering to realize of the massive payments and interest it accumulates.
Debt is much like a snowball that rolls down a hill. It gains more momentum the longer it goes, it gets bigger and bigger. Many people struggle to stop it the further it goes and they are unable to to control it or even stop it.
Hindsight being what it is, more young people need to be taught the consequences of their spending. Now more than ever, every time they use a credit card, every time they take out a loan. Many of the problems come from those who have bright eyes and big ambitions. Later on, they have many regrets. Perhaps they should not have went on massive shopping sprees, racking up credit card debts. Perhaps they should have tried to find a loan agreement with a less interest rate. Financial blind spots will cause trouble.
Interest, tends to get people from the back end as much as anything. Or rather the people who don't understand what they are getting themselves into before signing off with the loan agreement.
One day, many people will be free from their debt, with some valuable lessons learned. Yet the sad truth is, many people will not be free for quite some time. They keep paying, slaving, hoping one day that things will improve, to escape the cycle.
Coming to the conclusion the best way to escape the cycle of debt is never to be drawn in it in the first place.