Don't Let Your Debt Destroy Your Life

*This is a collaborative post*

My grandfather was a man who lived the all of his 84 years by the motto, “If I cannot afford to pay for it, then I don't buy it”, and for him it was that simple. Never ever did he take out a loan. Unfortunately my parents were part of a generation who were the victims of gross corporate greed of banks, cost of living rising, a banking loan culture of cheap money and of big spending resulting in economic crisis stemming from the crash of 2008, a recession that many economists argue we are still struggling to climb out of, despite what the mainstream politicians and media outlets would like us to believe. Banks encouraged so much borrowing and ultimately spent all of the money until there simply wasn't any money left, a whole generation of people in the UK and US have been absolutely ruined by the economic meltdown and the fact that they have accumulated tremendous debts via increasing mortgage rates and in many cases due to the use of credit cards.

My parents are two of the millions who believed that credit cards were worthwhile, a 'short term fix', but having seen the stresses caused to my family over two decades caused by the struggle of paying off debts on top of all ordinary living costs, I can honestly say that I have never even had a credit card. There's so much information regarding financial advice available at our fingertips and I can remember watching a YouTube video of the wealthiest investor in the world, Warren Buffett of Berkshire Hathaway which was filmed in 1999 but the lessons he teaches are timeless and definitely worth taking the time to listen to. Buffett said, clearly and concisely (without frills as is his way, which incidentally makes him all the more understandable to the financial layman such as I), 'do not get a credit card!'. No ifs, no buts. 

Coming from him, and with my second hand experience of the damage credit cards can cause to normal working families I took note. Buffett went on to simply explain the fact borrowing money at an interest rate of 18-20% plus, is not a financially viable way of securing one's financial security long term. It would be much better if you can get yourself into a position to loan the money out at 20%; seems so obvious yet it's a financial lesson I've never forgotten. Even so though I find myself with £30,000 of student debts, since of course, gone are the days of free university education in England.

Debt is difficult to avoid, it can be easy to let it run away with you and before you know it you can feel like you are losing everything so please refrain from credit cards, if a person loaned you money in the pub at 10% he/she would be deemed a loan shark and eligible for prison, the word shark is used for a reason, I'll let you use your imagination. So don't think that just because some company or bank are encouraging to take their card that it is a good idea, just remember the 20% interest you'll be paying for the next X amount of years.

If you are in debt already, and you are feeling like there is no way out, or if you feel like you lack the financial acumen to be able to make the right kind of decisions to alleviate the financial pressures you and your family may be experiencing, you should know that there are companies and people out there who can help you get out of debt.

They specialize in helping normal working people take back control of their lives. There are different systems and strategies for eliminating debt and dependent upon the amount you owe, you might actually be able to be debt free within just a year or two. Make sure you investigate the right kind of plan to suit you, whether that be consolidating all your debts into one big debt or another of the many approaches to debt management out there, look around and make sure you get the help you need to get you out of financial debt. Good luck in conquering your debt problems, and remember there is always help, advice and information available to you. Don't let your debt destroy your life. 

*Written by Michael David

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