Next year avoid obtaining funds from a lender if possible

Posted on December 22, 2013 10:04 am

Last week, a blud shared with me how un-payable debts have become a huge burden that even if he to work for another half century it’s impossible to clear. When he shared with me the state of his debt saying that it was going off the scale, my blud’s reaction was my debt is much bigger than Greece and worse of compared to some countries where stands at 200 percent of GDP and if his were to be quantified with GDP it would be something like 500 per cent GDP. However, at the moment he is just doing just fine and that is why a lot of his friends wonder why he was not afraid of, saying ‘Come on, I won’t borrow anymore.’ Why can’t I get more debt seems to be his urge?” This kind of reasoning which is deeply regrettable and a cause for great concern given the uncertain future of today’s young and future generations has become part of our lives but the consequences are dire.  Although am not a financial expert, I know broke has become a relative term and few are managing to gain control over their money or the lack of it. On the face of it, blud’s personal debt stands at 45,009 percent, a lot more than any other high debt individuals I have ever come across. This seems to imply that his debt situation is both grave and unmanageable. In reality this opens a risk for potential individual bankruptcy, because the International definition of personal debt differs from the levels of debts he has accumulated.

This also means that when the blud makes debt comparisons with other people close to him, the results have been ridiculous because of the different debt standards they hold. The formula he used to for calculating personal debt meets the legal requirements but it does not comply with the international norms and therefore it is not suitable for making comparisons with other friends who have on average 0.00010 per cent of his debt. This flawed thinking of my blud, together with the repeatedly borrowing habits, will not be a positive recipe for handling his deteriorating debt situation. It is more like a sugarcoated poison pill that will do nothing to control the situation, but instead will increase his debt that will take couple of his family generation to repay. It has been 12 years since he was told that understanding the debts repayments are the precondition for the financial freedom and stress free life he need to enjoy, and that continuously borrowing money will not promote individual happiness and satisfy more needs. His constantly deteriorating fiscal situation, which in future will force the lender to issue debt repayment ultimatum or lose his properties worth millions is a situation in which the person needs to raise income to service debt and quit the club of debt slavery that he currently rely on to make ends meet, placing his financial life in a vicious circle that it is unable extract itself from. They say debt is a four letter word that most of us know is a four word sentence that lays the foundation for preparing indebtedness troubles.

Contador Harrison