Why Debt is Bad?

Here are some points to ponder before you decide to borrow money or use credit card.

Physically...

• You are a slave to your creditor. You have to pay them first before you can buy anything you want. You are not in control of your income, other people determine where your money should go.
  
• You may go into hiding if your monthly payment for debt is more than your income. You will lose ties with your family and friends. All creditors are looking for you. Even worse you may even lose your job!
  
• You will lose your family members and friends if you borrow money from them and you did not pay them back.
• You will lose your dignity and respect from your friends and family.
• You are afraid to answer the phone. Creditors are calling you again and again.
• Your life is at mercy of others. What kind of life is this?

This is what happen if you have debt.

Financially...

• You are broke. You don't have money in hand. That is why you borrow money or use credit card. Don't find excuses such as I want to invest my money, I want to get credit card cash back, this is only temporary, and on and on, just admit that you don't have enough money to pay.
• You can not contribute to charity or to community. You will keep thinking "I don't have money enough to pay my debt, why should I give it to you."
• You don't have saving for emergency or for your future.
• You may dig into deeper hole by engaging activities such as gaming and gambling hoping for quick fixes.
• You will become greedy, calculative, and selfish. What kind of person is this?

Emotionally...

• You have no self confidence. You are afraid to talk about yourself or your achievement.
• You may think that it is impossible to turn thing around.
• You may think that you have screwed all your life.
• At the end, you may even think to end your life.
  

My humble advice before you borrow money or use credit card consider this check list:

• Is the purchase is a necessity or a want (such as hobbies, toys)? You will never satisfy your wants even if you get the whole department store. Your wants are endless, you need to control them.
  
• Is it really necessary to borrow? May be I can just delay the purchase until I have enough cash.
• Do I have enough mean to pay back within a month?
• Try to live on less than you make. If you spend everything you make, then you are financially a fool.
  
• Learn to give. You will get a lot more through giving. Ever wonder why philanthropists are keep giving and they never become poorer?
  
• Just remember one debt will lead to another debt. It's not the bank or the creditor that will help you to settle your debt. It is YOU.