Debt Full Personal Finance - Reasons
Even in the times when there were no signs of recession and the only thing that could be seen was progress, when increase in pay was a regular affair and the organizations went to all extremes to woo more and more possible employees, the condition of personal finances were always inclined towards debt. According to a survey, the things that trouble the people the most are the management of money and time.
What we have witnessed statistically is that more and more people are falling prey to personal finance problems. Why has this trend of being in dept not evaporated even though there were increase in the allowances and the prices of commodities never did rise?
The people all across the globe have started giving more importance to their present than their future. Retirement planning is not on the minds of those who wish to get their current needs fulfilled on a more urgent basis. Spending money is preferred to saving. An upward trend in this regard has lead to people increasingly improving their lifestyle. Things which were never a part of the household and nor were they needed have been spent upon and brought. This has been done on the expense of the money that could have been saved.
As far as the history of credit card goes, they were invented for use in conditions of emergency, but nowadays, buying with a credit card is preferred on the argument that it saves the trouble of carrying cash. But the negative aspect that comes with it is that there is no limit to the expense that might be incurred. Plus, use of credit card requires the card holder to pay interests to the banks thereby putting a further dent in the already crunched personal finance.
As the days go by, more and more people are contacting counselors for a session in money management as the ways adopted by them have resulted in poor money management. Once the problem is rectified though proper consultation (which also requires money) the people take a sigh of relief. This process works until they again loose track to their over spending behavior ultimately leading to another personal financial crisis.
The drowning in debt has been termed as a second nature. People have started living a life of debt by paying installments and premiums for all that has been purchased over their lifetimes. Millions of dollars are given on loan every year which has prompted giving loan to become another category of doing business. Personal loans for housing, automobiles, travel etc are now available for those who couldn't even dream of having one of these of their own.
The spending nature can be reverted to becoming the saving nature only though proper credit counseling which would impart the people with the side effects of using credit as a medium to fulfill their desires. This is required in order to save the public from another one of the kind of recession that we have just witnessed. Saving not only secures the future but also provides a peace of mind as there are no bills to be paid tomorrow.