Debt was originally meant to make life easy and be a catalyst to wealth creation. The narrative has however changed over time and the same debt that was meant to make people to afford sound sleep is giving people sleepless nights.
The same debt that was meant to help in wealth creation by making life easier has turned out to make life very difficult for the borrower. What then must have gone wrong and where did people lose track.
The problem originated when people started confusing debt for income. Debt began to become a problem when we started looking at it like another source of income instead of treating it as debt.
Debt began to become a problem the very day we borrowed because we qualified and not because we needed it to do something. We need to borrow because we need to borrow and not borrow because we qualify for a certain limit or because there is a willing lender who is ready to give out a loan.
The problem of debt also persisted because we started borrowing for consumption. When we borrow for consumption, we send a signal out there that we are living above and beyond our means and that is why we need debts so that we can finance and sustain the kind of lifestyle that we are having.
In short, it means that we are living our tomorrow today. The big question is. What will we do tomorrow when it comes?
Debt is neither good nor bad in absolute terms. What is bad is the trap of debt. When one gets trapped into debts, that is the time things don’t move well. It will affect your health. A good example is, you may attend a health seminar and get some recommendations on the healthy lifestyle that you may live.
This may however not come into reality because the reality will hit you when you get home that the food prescribed for you are not affordable or are beyond your means. It is the trap of debt that will be speaking at that time and it will make you to view things in a very negative manner.
In exercise, you will know very well at the back of your mind that you need to pay for the gym subscription but you will not be in a position to pay that subscription because you are trapped in debt. You will then give all manner of excuses.
