When you borrow money for the long term you are making some assumptions that often turn out to be false. You believe your earnings won’t be interrupted for 5 years, or 15 years, or 30 years. Ask yourself this, how much has the world and economy changed in the last 30 years? How many jobs 30 years ago are now gone by the wayside?
Do you think a computer, a robot or someone in China or India or anywhere in another region of the world can do your job for a fraction of the price? There are now 7 billion people on this earth. Many of them want your job and are willing to do it cheaper, faster, and more efficiently.
What are you going to do with all of your debt that hasn’t been repaid when your job keeps getting squeezed (along with your head in the debt vice?) Think about it. Do you want to prevent this from happening? Then get on with a plan to get yourself out of debt. How would you feel right this minute if you found out your job was being cut? Do you have the funds saved up to cover your expenses, emergencies, and your debt?
Do you have the discipline to stop going deeper into debt? Finance companies are fighting it out to obtain the largest share of your future earnings possible. They also believe your earnings won’t be interrupted for 5 years, or 15 years, or 30 years.
When you borrow money, you are front running earnings. You are spending money that you haven’t earned yet. Finance companies are fighting tooth and nail to lend you as much as possible. They are fighting to acquire the largest share of your future earnings as possible. They want to own you. They want to lock up all of your future earnings.
- Mortgage companies
- Auto lenders
- Credit card companies
- Banks giving you home equity lines of credit
- Payday loans
- Brokerage loans
They are all trying to figure out how to lend you as much money as possible while having a good shot at getting paid interest. You paying down principal makes no real difference to them. They would rather you just pay the interest only forever and ever, just so long as you don’t miss any payments
Then they own your ass. Forever. You in return own Nothing!
Look, you don’t own jack-shit until you get the title or the deed on all of your goodies that you buy. Boats, cars, RV’s, houses, whatever. You don’t own them until you make the last payment and all of the interest owed.
Don’t believe me? Stop making payments and see who really owns the goodies. The banks own your shit. You are just renting them from the banks until you pay them off. You are not alone. The stats are staggering on the amount of debt that Americans currently have.
Based on The Federal Reserve Bank of New York’s Household Debt and Credit Report’s Quarterly Report on Household Debt and Credit
- The total household debt increased by $192 billion (1.4%) to $13.86 trillion in the second quarter of 2019.
- Balances have been steadily rising for five years and in aggregate are now $1.2 trillion higher, in nominal terms, than the previous peak (2008Q3) peak of $12.68 trillion.
- Overall household debt is now 24.3% above the 2013Q2 trough
- There was $474 billion in newly originated mortgage debt in 2019Q2
- Mortgage balances shown on consumer credit reports on June 30 stood at $9.4 trillion, a $162 billion increase from 2019Q1
- Non-housing balances increased by $37 billion in the second quarter
- There was a $17 billion increase in auto loan balances
- There was a $20 billion increase in credit card balances
Do you want a simpler life? Do you want to be free? Do you want to dream about working at a job that you actually enjoy rather than working for some company as their slave so you can buy more stuff and have more DEBT? Here’s an idea –
STOP BORROWING MONEY UP TO YOUR STINKING EYEBALLS! WAKE UP! DO NOT BE A SLAVE TO THE FINANCIAL SYSTEM.
And guess what? The government doesn’t care one bit. They just want to make sure that they economy keeps humming along at a pace that doesn’t cause social unrest or motivate people to vote for real change.
You want, you need, you deserve, you are entitled to… I know, this is ‘Murica. Land of the free, home of the brave, and guaranteed unlimited shopping opportunities. It is all fine and dandy until the bill comes in and you have to pay for all the items you were entitled to.
Start today by making small changes and really planning for your future. Stop spending and start paying off your debt.