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What is Debt?
The concept of borrowing and lending dates back to ancient times. As it is with the way of the world, when a need arises and it is realized that a profit can be made, someone will offer to fulfill the need. When borrowing is used wisely and effectively, the transaction can be beneficial and rewarding to both parties. It must be understood, however, that when one is extended credit, and then proceeds to borrow against it, the used-up credit instantly becomes debt.
Debt is essentially "spent future income."
There are times when spending "future income" can be very beneficial, for example, when used wisely to purchase sound investments and for education. In both these cases, the borrowed funds could lead to greater future earnings. When one's "future income" is spent on non-essentials or consumables which depreciate, however, the borrowed funds could lead to disaster, and perhaps, a life of slavery.
This sector is dedicated to providing words of wisdom related to debt, money management, personal achievement and financial success.
Words of Wisdom
If a man empties his purse into his head, no man can take away from him. An investment in knowledge always pays the best interest.
Neither a borrower or lender be,
Do not be made a beggar by banqueting upon borrow,
A bank is a place where they lend you an umbrella in
Home life ceases to be free and beautiful
The surest way to ruin a man
Dreading that climax of all human ills,
Who goeth a borrowing
Getting rid of debt is like getting rid of an illness. First you have to recognize the symptoms and then you have to provide an immediate remedy. If you wait too long before treating the problem, the situation will get worst and it will take longer to recover. If your procrastinate on treating the problem it may cause long-term pain and discomfort that eventually escalates into a more severe illness, which requires a more drastic cure. If the illness progresses too far, if could turn into a chronic condition. Similarly, failure to acknowledge financial problems can escalate into more severe problems that are costly to recover from and require drastic solutions that may damage credit worthiness. Road To Debt Freedom
The human species, according to the best theory I can form of it,
It is very iniquitous to make me pay my debts;
A creditor is worse than a slave-owner;
Beautiful credit! The foundation of modern society. Who shall say that this is not the golden age of mutual trust, of unlimited reliance upon human promises? That is a peculiar condition of society which enables a whole nation to instantly recognize point and meaning in the familiar newspaper anecdote, which puts into the mouth of a distinguished speculator in lands and mines this remark: "I wasn't worth a cent two years ago, and now I owe two millions of dollars."