Credit is a real temptation in today’s society and modern life. At the time of our ancestors credit was mainly given out to entreprenurs after meeting certinal eligibility requirements by the banks such as having significant capital saved up for the start-up of a particular bussiness. However, times have changed and credit became common good for common folks. People started to rely on credit for such common place purchases such as buying groceries in the store. But that is at least food and something you can not deal without. But, then credit started being used and abused for doing the maintenance work on the house such as renovation, buying medication, paying for medical bills, purchasing make-up, and other basic necessities. Many people lost their homes and their jobs due to irresponsible credit use.
Irresponsible use and abuse of credit left harsh consequences and irreperable damage on our society.
It has the ability to destroy you financially or make you go bankrupt if you are not handling it responsibly. Credit has done an incredible and far-reaching damage to our society due to its irresponsible use and abuse. There were no strict criteria imposed or eligibility requirements set by the banks for who should receive credit. Credit was given out to just about anybody who applied for it without meeting relvent criteria. It all lasted until the money was there but then we suddenly faced a crash in our economy and immense inflation rates. Now our goods have artificially high prices that are rising every single day. We call our current situation economic recession. A lot of people are struggling nowadays to provide food on the table for their children as they are highly indebted.
Credit diminishes the value of our dollar
If you look at every dollar you bring home through your pay check, its value is automatically diminished when you have to pay off a debt. With credit you have to pay more money back through compound interest rates required by the banks as the loan institution than the original product is worth it. Credit was just stretched too far instead of being used for start-up businesses and down payments on homes. Thus, instead of saving money and paying for products and services in cash we turned towards credit and credit cards.
Credit enslaves us as persons
When you are indebted, your self-esteem is decreased as a consequence. You are never comfortable with debt as it is associated with the negative feelings of anxiety and frustration. Accumulation of debt over years is likely to produce more mental health illnesses present in our society due to chronic accumulation of negative feelings such as frustration, anxiety, and worry over time.
Credit is causing a need
Debt is causing a need and making you prone to just about any compromise in the world of work so you can pay off your debt. When you are indebted you can never feel completely free due to your subconscious that is constantly reminding you about your debt.
Emotional consequences of irresponsible use of credit
People are faced with anxiety, stress, and frustration over how long they will be able to maintain their jobs. Irresponsible use of credit has taken a high emotional toll on our emotional well-being not to mention financial consequences and decreased standard of living.
Credit is an obstacle on the road towards achieving financial independence
Credit stands as the main obstacle in attaining financial independence necessary for the development and growth of our business. If you want to attract money and wealth on your side, you have to be able to feel independent in your thoughts and actions. You can get easily used to juggling different amounts of credit. It becomes easy to get accustomed to a lifestyle of being indebted. So, rather than striving towards financial independence and wealth accumulation, you can easily get caught up in a vicious circle of paying off different debts and merely surviving. Survival skills that you use for managing your credit can easily get in the way of attaining success skills that can make you wealthy and successful.