Debt is not normal. People are encouraged to borrow money in the form of credit cards, bank loans, or other types of debt. Recently, the world’s second-largest economy, China, has become a major “debt-fueled growth machine,” which may negatively impact their economy and currency. However, debt is not normal and you should do everything in your power to avoid it.
It is extremely easy to get a loan. Many forms of credit are available, and even if you have no credit history, it just takes one loan or credit card to start building your credit history. Unfortunately, the application process and interest rates attached to these loans can quickly become overwhelming for an individual.
You should avoid debt at all costs for many reasons.
5 Reasons to avoid debt
1) You are a financial slave – as it is written in scriptures, Proverbs 22:7, the borrower becomes the slave to the lender. You end up working for your lender, as you have to repay and pay them interest. If you have no debt, you are free.
2) Debt encourages overspending – most individuals that have debt end up buying items they do not need or cannot afford. As a result, you will never be able to escape the vicious cycle of debt, and this can eventually force you into bankruptcy.
3) Debt is expensive – individuals that are paying back debt will spend more money on interest payments than they would have owed if they had kept the money in the bank. Sooner or later, you will be unable to pay off your debt. You increase your overtime work hours just to afford this unnecessary debt.
4) Debit can lead to bankruptcy – Once you have no debt, it is much harder to file for bankruptcy as you must prove that you do not have enough collateral to cover a bankruptcy filing. However, if you file for bankruptcy due to debt, it will be extremely damaging to your credit score and can affect your finances for many years.
5) It is a waste of money – as debt leads you into overspending, it can easily lead you into a lifestyle that is way beyond your means. In the end, you will have spent more money on unnecessary items that are only adding to your debt. You need to live below your means and stay out of debt.
Debt is not normal or necessary. You should avoid it as much as possible and stop using it as a means to live your life. Instead, you should live below your means and save money. You will be much happier if you have no debt and are living within your means.