Easy Credit Keeps People Working and Stimulates Economic Growth
September 7th, 2009 Filed under: Uncategorized — Economic Author
The lure of credit is echoed in the song “You can get all the things you seek for a dollar down and a dollar a week.” I remember my early desire for a car and saving to buy one. Then a good deal came along. Short of cash I convinced my dad to lend me what I needed and I would pay him back monthly. In order to pay my dad I worked after school and on Saturday’s to earn the payments. That was my first payment plan and my first experience of mortgaging my future.
Then I got married. I financed school tuition, another car, new furniture, a stereo, and various consumer goods. The payments added up to within $5 of our monthly income. Then I lost my job. Within days, the bill collectors showed up. It was a good lesson showing that debt is very serious when you can’t pay.
Time moved on and I bought my first house on credit.Then credit started a business that produced
extra dollars so I read books about leveraging property.That is where you take a little, or no money to purchase income property. Soon I found myself with $500,000 of debt for income property. Then disaster struck when the properties income faltered and I could not make the payments. Close to bankruptcy I experienced a lot of sleepless nights.
The allure to mortgage our future is magnetic and unrelenting. We buy houses, cars, and consumer goods. Early in life people take on debt with student loans, middle age people helping their children get educated. Older folks have medical bills. It never ends. Everyone except the rich are sucked in and we always owe somebody for something. In America we call it “Freedom”.�
The problems and possibilities of debt as a way of life extend throughout history. Mortgaging the future is a way of life for much of humanity who forget that when they owe money to someone, that person or company own a part of you. Choose right and debt can make you rich. Choose wrong and you may end up a slave.
I would love to hear your story about how debt enhanced or worsened your life.
E-mail drtallmon@charter.net
