Debt as we know is any amount borrowed by one person from another. It is usually used to buy things that we may not be able to afford under normal circumstances. But debt could be used any way we want.
Debt has many forms. Some of which do not incur any interest at all and others with very high interest.
Some loan companies may even charge more interest than the amount you borrow. And this is a sure way to multiply your debt exponentially. Payday loan, for instance, is a trap! You come out smiling, with their money on your pocket, you think it's yours but actually a bomb they set on you with a timer. It will explode at due date. And if you were just busy before, you're sure to be busier taking calls from collection department if you are not prompt enough with your payment.
The mentality that will lead us to exponentially increase our debts is "I will borrow then pay it during pay day."
Comes pay day then you pay and eventually reloan just because all money went to paying up. Then you reloan and reloan until you will be needing amount just for interest. It will eat up your salary and it will grow like a shark. It will devour every penny that you might have saved in your bank accounts. Afterwards, it will consume your family's money as well as your friends'. Then money of just about anyone who is willing to help you.
Once you're exposed to this situation and you have a poor mentality, you are at risk of bankruptcy.
The question now is, "How will you ever be able pay?" Interest keeps multiplying if you won't extinguish your payday loans! In just a month you may incur interest close to 1 BCH worth! How unfortunate is that?
So how will one be able to pay?
The trick if you ever can is to borrow a large amount (from someone or pooled from people) that will cover up the payday loans. And you have to move as fast as you can before the timer stops and the bomb explodes! Motion motion motion is what increases your power here. And if we were to think about it, why didn't you just turn to family and friends in the very first place?
An honest advice of those before us is to simply economize whatever we have. Simple as that. We have to be wary of debt before it tears us apart. Wisdom will make us at peace in the quiet of the night and we won't be slave to money. Instead, money should work for us. It seems so simple yet requires a lot of discipline.
Following is a firsthand experience I am telling you.
I was so tired budgeting the income I was receiving and I told myself to try the loan app which was being advertised on a social media platform.
It was very nice at first. With my foolish mindset I thought, I will be able to pay it during the payday. But then what's left after paying the loan is not enough to get us through so I decided to reloan. Then the cycle continued until I tried other loan apps. Wow! I was so busy! Not with my lesson plan or blog or studies but with signing up on various loan apps. I was eaten by lack of wit. I was almost bankrupt when I realized I needed to remedy the situation.
Out of desperation, I resorted to my family and friends. Pooled the borrowed amounts then paid off my loans.
When you're almost over it don't lower your guard.
Just when I thought I was free from loans I said to borrow just one more time and pay it and be done with it. I forgot again to simply borrow from family members or trusted friends. It started the second wave of the very same experience and I promised to once and for all end the cycle.
Just something for those like me:
First of all, stop being lazy! This is more of a self advice. Don't get tired budgeting and planning especially financial matters. It means a lot to set an amount for each of this and that.
If you're short on budget, don't be ashamed to ask from friends and families. And be sure to have timeline for paying. Make it a point that you write amounts and dates.
Seek financial help from experts and make sure to take down notes.
Thank you for reading.
Any comment related to the above is much appreciated.