After reading this article in the NYT The Debt Trap ... I was a bit flummoxed. I just don't get it. One thing I want tomake clear right away, although this article is about americans, to me the country is really interchangeable.
What really beats me is HOW can ANYBODY spending more money than they have think it is NOT their own fault? Excuse me was there anybody close by pointing a gun to your head? Making you spend money - you don't have, none the less!
Are there really people in this world who think that it is their RIGHT to own and have everything they think they should have, even if they can not afford it? So when finally they are disowned they actually believe somebody else than them is to blame for their misfortune?
HELLO? WAKE UP CALL!
You can only spend money you have on things you think you need. And by that I mean: actual needs first and everything after that is luxury. Please repeat: LUXURY!
Be it a cigarette, a muffin, a computer, a TV, a car, a house, a boat, an airplane ... whatever!
As much as you like you don't NEED a house, you can rent an apartment. Even a very small one. Depending on where you live: do you really need a car? Maybe there is public transportation. Yes, not as convenient, not as flashy, but doable. Buying on QVC? We are talking crappy stuff nobody actually needs. Can't resist? Watch another programme. Still can't resist? Read a book instead (get it from the public library and return it on time, save a whole lot of money as compared to buying it), preferrably one that not only entertains you, but maybe even teaches you something. And I am NOT talking about all that "The secret of a successful and ginormeously rich life". Only the outhors of these books get rich for a whole lot of "hot air".
And if you ever have to borrow money - putting it on a credit card, a mortgage and so forth is nothing else - than never borrow more than you can possibly repay next month.
Buying a house without putting down any money of your own at all is simply stupid. You don't know if you get to keep your job, you don't know if you are going to always stay healthy. If you have no security in your back at all, you need to be either THAT lucky or win the lottery! Which basically is the same.
Yes, sometimes in life one has to take a risk. But make it a risk that you can control. One that gives you more than one option of a way out!
It is very symptomatic that today everybody thinks they need to have everything. Big surprise: you can't, and you don't need to. As unfair as it is: it is life. And it certainly doesn't change when you spend more than you can. In the end you'll just end up having even less than you could have had if you had spent your money wisely and saved and you are even more miserable. You have won nothing, but lost all.
And it doesn't take a doctoral degree to know that.