Sharing Daily Discoveries About Personal Finance And Business Topics

Credit Increases And Debt

business and finance

Interesting situation I saw today as a bunch of people were complaining how they had no money while saying that they have exhausted all of their options. Example, credit cards all maxed out, owing friends money, etc. Interestingly enough, they all seemed to have one thing common in their story.

Essentially, they all mentioned how when they were young they were able to handle credit okay for the most part. As a result banks kept offering them more credit to use and since they were all young they thought this was so great and eventually kept spending more than what they had. I guess you all know what happened after. Some people were saying that they accumulated thirty thousand dollars of debt in a span of one year.

It was kind of interesting how everyone started to attack the banks on how they lured them into thinking that they could keep spending without worrying. Would you really blame a simple situation like an automatic credit increase on your credit card as the main reasons you say overspend? I think it all comes down to discipline as one person even made a comment that pretty much nailed it I thought. She was saying how even though she is in her late thirties she had no discipline in saying no to herself when it comes to things like shopping.

If anything having more credit should help you get out of debt I’d say. It gives you more flexibility and opportunity to invest and make money. Unless you specifically view credit as a way to simply buy stuff then I can see why it would drive you into debt as it’s like literally putting $10,000 in cash in a person’s wallet where they won’t even think about their funds drying up until they have less than say one thousand.

If someone gave you this farm that kept growing food for you are you going to blame it for making you overweight if you overindulged for example? Likewise, if nature all of a sudden decided to grow more great fruits for you would that be a bad thing? Just like credit it’s all about how you use it I’d say.




Leave a Comment

Your email address will not be published. Required fields are marked *

Menu Title
Loading...