The Debt Addiction
I seems that debt is one addiction that we cannot seem to kick the habit of.
For many being in debt has become a way of life and we are addicted to allure of being able to buy now and pay later.
Hoping that later will never come and if it does, we will deal with it then.
Unfortunately, with a slow economy that has never gotten of the mat since 2008 the day of reckoning came sooner then many hoped for.
We piled on the debt feeling secure about our jobs and our ability to pay.
Both now seem like illusion of some yesteryear.
Jobs are gone and most and never coming back, suddenly many are faced with running out unemployment benefits.
The credit card and other bills have not stopped coming even though the paycheck have.
Faced with putting food on the table, paying the rent or mortgage and paying the credit cards, the decision is not difficult.
The credit cards can wait and will be paid when the situation brightens.
Perhaps this was the only way that we could learn our lessons and come to grips with reality that we cannot live beyond our means.
I sincerely hope that even those that have been fortunate enough not to face this type of situation have learned from what they seen occur to friends, family and neighbors.
To blame this totally on the consumer would be irresponsible.
Credit card companies lured many into credit with flavorful offers that the debt addict could not resist.
Buy now, pay later, zero interest rate for a year, no annual fee were some of the marketing cries of these companies.
Now faced with mounting losses from people unable to pay these seemingly sweet and wonderful companies have turned into vicious monsters.
Inflicting further misery to the consumer they once so much loved by jacking up interest rates to 30%, lowering credit limits so many ended up over limit and without a lifeline, and other wonderful ways of torturing the already moribund consumer.
Mortgage companies played the same game, low teaser interest rates, small or no down payment and lured many into buying homes that they could not afford at a time when real estate prices were at their peak.
Now they are force to take those home back and leave those that lived there looking for shelter.
The situation became so critical that even banks hesitated taking properties back.
It really does not matter who you blame, it was a covenant of mutual destruction that will have ramifications for generations to come.
Finger pointing is easy, but there is no group responsible that should be singled out.
It would not do any good and could not repair the damage already done.
However, learning the lessons is all-important, so that we will not repeat the same mistakes.
This and kicking the debt habit once and for all perhaps will be the positive legacy of this period in time that we are still in middle of living through.
For many being in debt has become a way of life and we are addicted to allure of being able to buy now and pay later.
Hoping that later will never come and if it does, we will deal with it then.
Unfortunately, with a slow economy that has never gotten of the mat since 2008 the day of reckoning came sooner then many hoped for.
We piled on the debt feeling secure about our jobs and our ability to pay.
Both now seem like illusion of some yesteryear.
Jobs are gone and most and never coming back, suddenly many are faced with running out unemployment benefits.
The credit card and other bills have not stopped coming even though the paycheck have.
Faced with putting food on the table, paying the rent or mortgage and paying the credit cards, the decision is not difficult.
The credit cards can wait and will be paid when the situation brightens.
Perhaps this was the only way that we could learn our lessons and come to grips with reality that we cannot live beyond our means.
I sincerely hope that even those that have been fortunate enough not to face this type of situation have learned from what they seen occur to friends, family and neighbors.
To blame this totally on the consumer would be irresponsible.
Credit card companies lured many into credit with flavorful offers that the debt addict could not resist.
Buy now, pay later, zero interest rate for a year, no annual fee were some of the marketing cries of these companies.
Now faced with mounting losses from people unable to pay these seemingly sweet and wonderful companies have turned into vicious monsters.
Inflicting further misery to the consumer they once so much loved by jacking up interest rates to 30%, lowering credit limits so many ended up over limit and without a lifeline, and other wonderful ways of torturing the already moribund consumer.
Mortgage companies played the same game, low teaser interest rates, small or no down payment and lured many into buying homes that they could not afford at a time when real estate prices were at their peak.
Now they are force to take those home back and leave those that lived there looking for shelter.
The situation became so critical that even banks hesitated taking properties back.
It really does not matter who you blame, it was a covenant of mutual destruction that will have ramifications for generations to come.
Finger pointing is easy, but there is no group responsible that should be singled out.
It would not do any good and could not repair the damage already done.
However, learning the lessons is all-important, so that we will not repeat the same mistakes.
This and kicking the debt habit once and for all perhaps will be the positive legacy of this period in time that we are still in middle of living through.
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