A lot of people would say that it is inevitable to not get into debt, especially with how the lifestyle most people are living in. However, it is really that necessary to be in debt? Can’t people simply live within their means? It’s like people doesn’t really mind struggling as long as they are getting some money. In the beginning, it seems like it is perfectly fine to have a little debt, but then it grows bigger and the only time people realize that is not really good for them, is that when they get all the bills that they need to pay, including all the interests. Debt is indeed bad for you, especially if it gets out of control. Here are a couple of reasons why debt is being in debt is never a good thing.
“Small miseries, like small debts, hit us in so many places, and meet us at so many turns and corners, that what they want in weight, they make up in number, and render it less hazardous to stand the fire of one cannon ball, than a volleyball composed of such a shower or bullets.” Rudyard Kipling
#1 No Savings
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It is very important for a person to have enough savings, because this is the money that you’ve been working hard for and saving it for emergency purpose or for buying something that you’ve been dreaming of is such an amazing thing. However, people who have debt are the ones who are least likely to have savings. These people’s salary are basically meant to pay for their debts, the bigger the debt, the longer it will take you to save. Payday is like one of the best days, but for people with debt, it just like getting the money but that’s no longer your
Debt is heavy. It sits on your shoulders and weighs you down. Debt is also addictive. It 's easy to throw something on credit when you don 't actually have the money to buy it. It gives you instant gratification, and that can feel good - in the moment. But, for many people, there comes a point where they can 't use their credit anymore and debt is all they are left with. The stress of having to pay it all off can take its toll on your happiness and health, so you must come up with a way to get out of debt and start living a debt free life. Following are two things that will help you get out of debt once and for all.
One important idea portrayed in Dave Ramsey’s book was that a lot of the “obstacles” to a debt free life is mainly attributed to your mental and emotional thoughts. These obstacles would be characterized as the feelings of contradictions, inexperience, obliviousness, denial and ignorance. These small characteristics are the stem of financial problems. These emotions don’t allow a person to see the great successes such as a debt free life, so in all they lead to a lack of motivation. These emotions are actually connected to the idea of “Keeping up With the Joneses”. This goes hand in hand
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
The national debt surfaced after the revolution when the United States government had to borrow funds from the French government and from the Dutch bankers. By 1790, the U.S. government accumulated millions in debt, but no one knew precisely how much. The Constitution mandated that the new government take over the debts of the old government under the Articles of Confederation.
In my opinion, what you are being told in high school is only half of the story, once you are in college you realize that you will have to face a financial DEBT, which among students seems to be rising and we are overwhelmed with repayment after graduation. According to studentloanhero.com there is 1.26 trillion in total U.S. student loan debt and there are 43.3 million Americans with student loan debt; these are crazy numbers, which in my opinion shouldn’t be that high and we should formulate a plan to lower the numbers.
When it comes to achieving success in the working industry and accomplishing a successful career an education is important. Getting a degree is essential to be successful. The issue is the higher the education the person wants the higher the cost is. Nowadays, not everyone can afford paying out of pocket for an education, which mean that students are forced to take out large amount of student loans to achieve that degree. Student debt is an ongoing problem, students are gaining oversized debts that most of the time if not ALL are defaulting and jeopardizing future credits. How much debt it too much debt? Everyone should have the liberty to
The article, of the extreme student debt crisis, written by James B Steele and Lance Williams, is a disturbing truth fact. The student loan industry is not there to help the students get ahead. Its only goal is to line the pockets of private investors, banks and the federal government.
College debt is a universally known issue that remains one of society’s largest burdens today. Over the past ten years, high school students and graduates realized that they must seek a higher education in order to find a job that keeps food on the table. Attending a college or university is practically required in order to succeed in life today. Millions of people seek a higher education to pursue a degree, graduate, and acquire a quality job that supports their everyday needs. It often means a lot of money to pursue and earn a degree nowadays. What they don’t realize, is that paying their tuition and housing deposits is essentially signing a contract, costing them thousands of dollars in the near future and leading them down the dark path
Why has our generation become so immersed in debt? Student loans are a major contributing factor. 40 million Americans now hold student loan debts (The Institute). In 2014 the average student loan debt per student was $28,950 (The Institute). However these numbers are declining, student loan debt is and has been continuously rising each and every year. If a student wanted to pay off their $28,950 of debt off in 5 years they would have to pay $559.68 month. To put this in perspective, 559.68 is more than the average car payment. Even if students wanted to pay off their loan in 10 years they would still have to pay $321.40. This is 10 years of hard earned money that students will never get to see because of the cost of education.
The U.S. National Debt has been an issue for a long time. It continues to rise each year and it is becoming even more of an issue as time comes. It would be near impossible for the debt to go back down because of the population of the United States, the spending of the government, and the student loan debt. The debt will continue to rise unless one president can figure out how to decrease the debt, like Bill Clinton did. The National Debt can only be paid off by the taxpayers, which would never happen because the taxpayers do not make enough to pay for our government's failures.
Is there a way to eliminate student debt? Student loan is becoming a serious problem nowadays. A lot of college dropouts are buried under thousands of dollars of student loan. Some believes student debt crisis is rising due to high tuition, while colleges and universities blame high tuition on insufficient state support. Rising student debt is affecting people’s health, and it is delaying their further higher education. Student debt is an issue affecting Americans of all ages, so to solve this crisis the interest rates should be lowered, federal and state government should contribute more to lower tuitions and employers should somewhat participate in student loan repayments.
How far in debt is the United State’s of America in, and how, We the People can stop and get rid of the debt.
I do not want to experience the serious problem of unpaid debts and bankruptcy when I am grown up. We should not have excuses to spending lavishly. Prudent spending is always wise. After all, it is better to save that money for a rainy day than to spend it foolishly.
Global debt crisis is essentially widespread globally. There are different issues that can cause debt crises. Currently, different countries around the world are facing debt crises, and definitely that is because of an error in the banking system. We’ll see below what are the main causes briefly and what are really the objectives that lead to a collapse in the banking system or so financial crisis.
If you can 't afford to save as you have too many debts, let 's say you have personal loans and credit cards and are already behind in these payments then you really need to earn as much money and pay these off.