What is Debt?
Debt is an act of collecting or borrowing money from someone in an aggrement to say him at certain period of time. Debt and Credit work together as one, for they are both the same action. But due modernization and the way we get used to the naming, debt describes a huge amount of money.
Why do we get into debt?
Simply, why do people fall into debt? Lack of planning! Is it ok? Lack of physicological balance.
There are things that are unnecessary in life that put many people in the valley of credit upon credit. Lets take for example, a simple meal. Everybody knows that you can eat every meal without meat for a year and be as strong as the continuous meat eater. So instead of staying out of debt by skipping the delicious meal, in a wait for better day, you go into it without thinking about the future. Remember, investment should be the first of any decision man has to take as he starts from his youth before having a family. The more primary expenses, the more you go deep into the valley. So we define this as; over self-evalutation cause people to fall into debt problem and be sick with themselves.
Financial Insecurities - caused by self?
Many of people without knowing it, cause financial security to themselves. Sometimes we fall into debt that we just can't figure out why is the cause. No genuine distaster, no lost of credit card, no lose of job or missing salary. But all we see and hear is debt. If we turn around the street, debtors are there to have us arrested. Do you think this can happen without a cause?
Check yourself out. No one squander the cash if not you or with your permission. Didn't you think about today, yesterday? It is by self that you cause insecurites, and to add more salt to wound, you become a credit collector and you put yourself into minor debt problems.
So financial insecurities here means, not saving a dim, not trying to, and not ready for the worse. The time when insecurities would work its disaster in destroying you is when something critical happens that is the time to realize your folly. Debt problem generally arises from lack of plan and lack of concern in building income through the many investments the modern world has. As an average fellow, you need to keep not less than $100,000 in your bank account before moving into the simple expenditure of living. If saving becomes your primary need, you won't find yourself in debt problems.
Physical Satisfaction only, cannot bring happiness.
So choose one.
We are getting back to our physicology once again. The big reason why people fall into debt problems by lack of planning to save or make a financial security reliable, is the seek of happiness from physical satisfaction. What our mind and emotions need is nothing like spending in order to get yourself the temporary one, although it contributes. Permanent happiness cannot come from physical satisfaction only. If you want to be happy, go and live with honest friends and 75% of your problems are gone. Also, understand that making your body to enjoy now and suffer then is just a way of wounding your esteem through your emotions. And you know, both the two can betray to cause bitterness and even fall into debt problem more deeper. Can I say that, knowing that I've saved is my source of happiness!
What We Do with credit determines the debt coming in the future.
Do you invest money or save? Doing one of them is wise, but investment on a proper ground deserves to be the best. Apart from those factors, planning goes first before any funny implementations.
Emergency debt problem: is it your fault?
It might be your fault if I can guess. As we've talked above about insecurities, having financial securities means having saved raw cash that can be used any time an emergency needs come. So without the emergency fund, where are you going to get the cash to solve this problem now? It might be health, or anything worser or better than it. So many times, emergency debt can also be our fault. You know, no problem without a cause, and the cause must be with the fault. Likewise, debt problem must have a cause and the blame must be on the handler.
Physicological Method to get out of debt problem.
It is very obvious. Physicological adjustment is "all" we need to get out debt problem. Credit counselling encourages that debt solution should start from the mind. Always save before spending. Run for your life from unnecessities and run from debt problems.
