I’m sure many of you reading this right now have come to learn that this fact “Debt Equals Slavery” is true. This economic crisis, recession going into depression…whatever you would like to call it has not just woken up a lot of American’s but people all over the world.
Because I live in North America and I read the news here, I can see that there is a lot of people on this continent suffering because they are loaded up to the eye balls with debt, and do not know how they are going pay it back (Just like the American Government right now). Their debt and interest payments are so high on a monthly basis that more than 50% of their income goes to pay debt, while the rest goes to housing and food, which in the end doesn’t leave them much to save.
Now if these people lose their jobs on top of having all this debt, then basically they will lose everything. They will lose their income, their homes and livelihood…if they do not have enough savings to ride it out, until they find another job. This unfortunately is the reality right now for a lot of people out there, I know a few people, and you reading this might know a few or your friends and family might know a few.
As for me, and the people that I know who are in this situation the road to this outcome was clear as mud to them. When times are good people gloat, party and throw caution to the wind, when really they should be preparing for future. So, the people that I knew racked up debt for luxury cars, vacations, party’s and dining out all the time without keeping a watch on their spending like a hawk. They assumed that they will always have income coming in, and can continue to live a lavish lifestyle on a pauper’s wage.
When it was too late and businesses were losing money, had to tighten budgets and cut cost by letting go workers…the people I knew were caught off guard, and they lost their income and their ability to pay back their debt, in which case they would lose everything. They realized that they had racked up too much credit card debt for material things that they really didn’t needed or vacations which they couldn’t really afford.
The reason why, this article is called “Debt Equals Slavery” is because, for these people that have indebted themselves to the extreme like let’s say $50,000 in credit card debt, plus their mortgage it would take them over 7 years to just pay off the credit card debt while earning a salary of $70,000 per year, with mortgage payments of roughly $1300 a month, Now if their mortgage is higher, then of course it would take the person much longer to pay off his credit card debt, and he will have to toll away for 7 plus years just paying debt and interest, while the banks laugh and make lots of interest money off of him. Now if that is not slavery, then I do not know what is.
1. Should you feel sorry for people who you know that are in the above situation?
2. Should you feel sorry for yourself, if you are in this situation?
I for one, do feel somewhat sorry, but people in the end or responsible for their actions and if they couldn’t balance their cheque books or manage their credit card spending, then really they have only themselves to blame for living beyond their means. Ignorance, and walking around unconsciously about your finance is reckless. Unfortunately, there a lot of people out there who think money grows on trees, and that tree to them is the credit card. Credit to many North Americans was the drug of choice for instant gratification. They don’t take the time to educate themselves on money matters therefore fall prey to banks or mismanage things. Now is not time to feel sorry, now is the time to act and correct and learn from the old behavior and mistakes.
In many societies, the same pattern is true. Media commercials tell you to buy this, buy that, it would make you look better,
sexier more important (luxury car, jewelry, brand clothing). What you have no money? No problem we can lend you some put it on the credit card. Banks love giving out credit, they love to enslave people with the shackles of debt. Banks loves it when people have low self-esteem, and self-loathing that when a commercial tells them to buy something because that will fulfill a fantasy or boost their egos, they do it blindly with debt like brainwashed sheeps.
Some harsh lessons about debt is being taught to a lot people out there, and I just hope that the ones who are in a big mess, learn an important lesson and turn their habits around. Also, I hope that they become more and more conscious about why they need to buy something, cause that is a major part of the problem. Slavery in the dark ages, were enforced with metal shackles, chain and a whip, today the banks do it to you by the invisible and psychological shackles of debt to keep you working and paying interest. The banker slave masters don’t care about your race, religion or creed, you will suffer and work until your back is broken to pay back your debt.
Our grandparents who lived in the belt tightening era of the last depression knew about the perils of debt. Some tried to warn us newer generation but we ignored them, and partied hard in the “Credit Party” like it was going out of style.
Watch “Maxed Out” documentary see how banks push debt.
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