- Personal Finance»
- Understanding Finance
Debt: Sugarcoating the Consequenses
We Gotta Have It!
Without even getting into the amount of NATIONAL DEBT we are in as a nation, our generation has adopted the same mindset as our nation: "Why wait, we need it now, let's do what it takes to get it."
But, what kind of long term damage are we doing by: signing up for student loans, buying cars (getting all the financing we need without blinking an eye), and putting 7% down on a house creating a greater monthly payment, a longer payoff date, and ultimately interest rates that are, in the end, causing us to pay DOUBLE for our home!!!
HOW IS THIS OKAY?!?!
What happened to our grangparent's mindset?
We live in a "hipster" generation. Everywhere we look there are people in their teens and twenties buying their clothes from thrift stores, and bringing back vinyl! It's "cool" to wear suits and top hats and drink from mason jars. IT'S EVERYWHERE!!
Yet, when it comes to the old school mindset from our grandparent's era that said: "Don't buy it unless you can pay cash;" hipsters everywhere in our generation are doing exactly the opposite of this advice--or at least it would appear that way...
For example, let's just assume that college is a natural progression for the average 20 year old which includes student loans and such. But, now, not only are student loans the only debt, that person would have, car loans seem to be almost the next sort of "adult" step. In other words, buying a new car seems to be the next thing every "adult" must do. This means, you guessed it: MORE DEBT for that average 20-ish year old!
AM I THE ONLY ONE WHO THINKS THIS IS OUT OF CONTROL!?!?
What's the Result?
WE ARE A BROKE GENERATION!
Money slips away quickly. Anyone with a credit card knows this. Interest rates suck money away. Yet, again, there are more people in debt now then there ever has been, and debt has become a way of life.
Either, our generation DOES NOT realize how much of an effect debt has on their future, or they are in denial and would rather not think about it and just go on as if it weren't a big deal.
Where's the Root?
The amount of debt the average person has, makes me wonder if it is a matter of work ethic? Are we simply not willing to have the patience it would take to work hard and save for the things we need/want? Or is it a lack of discipline in staying on top of our finances and saving? Is it laziness?
I am purposely leaving this open ended because I would love to hear from you.
What do you think is the root of our getting into debt. And what do you think about the amount of debt we have in our generation?