Many, if not most people, ignore or seriously underestimate one of the most dangerous aspects of their lives – debt. We all (well, 96% of us) have debt to some degree or another.
”It’s a normal part of life,” society claims.
“There is Good Debt and Bad Debt,” people insist.
“Just put it on credit, get a loan – it’s okay,” or so we’re told.
But, is any of this true? Go back a generation or two, and see how different people dealt with money and purchases.
What Has Changed?
Technological advancements and standards of living have changed life significantly. An average family household today is crammed full of machines, gadgetry and technology designed to make life better and easier.
Modern life expects us to have more things, but the average wage evolved as well. With this wage growth, why is society so heavily burdened by debt? Fifty years ago, debt was either unheard of or, if you had it, you paid it down as soon as possible. Regular people bought houses and other significant items. They just didn’t have access to easy credit. They also didn’t have that “instant gratification” mentality.
Back then, if you wanted a car, you earned money, saved up, and paid for it once. Rather than walk, you could then drive to the supermarket every week to get your food. Today, almost anyone can get a car. The bank will pay up front, and debt allows the individual to pay it back later.
What’s The Cost?