Have you witnessed debt almost destroy people?

Hi Dominique, I have experienced in my life the bad taste of the debt. It has spoiled my life and my family's life. Due to some wrong planning I have purchased a flat around 5 years back. While staying in that flat I have forced to take some other personal loans and credit cards. After 2 years I sold the flat and clear the home loan. But several personal loans (loan taken in small amount but the interest too high and short term loans will have more EMI.). For last 3 to 4 years my aim was to clear out from the debts. Some how I have closed 4 credit cards and some personal loans. Now there two personal loans which are over due and unpaid EMI for last 4 years. 2 credit cards are also pending to be paid for which also not paying any single penny for last 4 years. Now you could understood how much struggle I had due to the pressure, harazment from the bank people, recovery agents etc. They spoiled every thing. They were harazing me in my office, home, in road etc. 75% of my earning has gone by paying the EMI and credit card dues. I could not buy a home, even a two wheeler. Now I am advising my friends, to away from the credit cards and personal loans. Thanks for a good discussion points.

A lot of people don't concider getting stuck in debt until they find themselves there. We all need to be better at planning ahead, myself included. My debts are nowhere near the amount you stated, as mine are in the $5,000 range all together, but still with this crappy economy and lack of a sitter for my son, even that is hard to pay off with everything else, too. I push it from my mind and pay when I can so I don't stress over it. Life is too short.

Good day Dominique25, With reference to your post, I witnessed a lot of people drowned into debts because of credit card over usage. Hence, they didn't anticipate that they will be drowned that much. That they have enjoyed using it in the aspects of purchasing and availing things. Thus, this situation can really destroy people. Since they are drowned into debts, so they are prone to spend all their income in paying those loans that they incur. The moral lesson here is just to live within your means. As living beyond your means will somehow lead you to debt eventually.

I have always been told that there is good debt and there is bad debt. Good debt is a mortgage that you are paying off on time each month as it builds your credit which in turn gives you better interest rates on other loans. There is bad debt...credit cards with high interest that you only pay the minimum on each month would be just that. In my 14 or 15 years of having a credit card, I have never missed a payment, and only twice did I not pay the full balance. My husband and I have no student loans left, we paid off our higher home equity loan, and are paying down extra on our mortgage every month. Owning a house is an investment, but I would rather have the stability of knowing it is MINE than the chance that my landlord decide that he wants to sell and give me 30 days notice (happened when I was in college and renting a house).

yes i have seen many people life getting ruined and savaged for debts and it is really worrisome

I had credit cards before but i already gave them all up because I did not find them very convenient to use. it only drowns you to be tempted on making debts. I have witnessed a lot of friends going through a difficult time because of that too. Honestly, I do not participate in any lending activity from friends or anyone because I don't like the troubles they can possibly give. I only live by my means and do not have problems being getting things I won't be able to settle soon...

Back in the 1990s, when the recession was on, I was working on a telemarketing job and when I went shopping with my husband, the store wanted me to get a separate card from my husband. Well I estimated what I could buy and paid off each month, then what happened because of the recession I found that I got paid less and less. So if it were not for the recession, it would have taken me less then, possibly a few months to pay off the debt, but it took it five years. I think a lot of people have that same problem. Something happens, they lose their job or have to work part time, and find that they cannot pay their bills in full. I think with houses, you cannot help it with mortgages. But one should not use credit cards to pay something that is a luxury unless you have the money in the bank to pay it off when the month ends. It is not the amount of credit cards, it is that you have the money to pay each one off in full at the end of the month.

I haven't personally witnessed it but I learned that a woman who borrowed a large amount of money from my mother is now facing huge problems. She didn't just borrow money from my mom but also from other people. I've also learned that this woman was issued a formal complaint by some of those people. And the effect of her huge debt problem is now putting a heavy cost on her mental and physical health.

I have always been fearful to go in to debt. For that reason I have limited my wishes. Due to the fear of going to debt, I hesitated to even apply for a credit card. I was only after getting a sufficiently paying job I applied and received a credit card. Even now I make sure that every month my bank balance is enough to pay the credit bills. Not having enough money to pay back is something scary and I do not want to jump in to such a lifestyle. Thanks for bringing out such a wonderful discussion.

Hi dear Dominique thousands thanks for posting this discussion, I´m in loan, but I work hard to come out of it. I lived very hard times with my former family. The credit cards and loans helped me as nobody in the world could have done, and I work hard now and without regret to return every blessed cent they loaned to me when I needed it. I really lived very rough times that owing money is just another challenge now. They helped me have a business and I have to work very hard now. Blessings Dominique... dainy

WE should be mindful in all our spending.. Latter Day prophet counsel us today that we should pay our tithing first and then spend below our means and avoid debt as necessary...

Thank God we have never gotten any credit cards and we don't own a house yet. But my parents on the other hand are in major debt with credit cards and their house is about to be taken from them. They are so stressed out and in really bad shape. They have a lot more debt than $40,000. I tell my husband all the time I would rather be poor and not have enough money for things rather than be in debt with credit cards and such.

Fortunately, in my friends circle, no one has been destroyed by debt. But I know about two families who suffered from it. One family still suffers from it, and it's really hard for them, and there's a slight chance that they would be destroyed. They got a debit card, and they bought computers, TV, fridge, washing machine etc. from that, but the deault interest is pretty high, so they kind of live day by day, they can't afford any tiny luxuries, the mother had to take up two side jobs, and the moneylessness is kind of affecting their marriage as well, and that is the worst thing. You know, they fight, they don't enjoy life because they go to the cinema once a year (which is their son's Christmas gift) at most, and they can't afford anything nice. The other family had to borrow money from us to be able to pay their debts. But now they don't suffer from this problem (and they paid the money back, too :D).

It nearly destroyed me. When you don't earn enough money you borrow and then you can't pay back without more borrowing and so it accumulates. What kills me is the employers who refuse to pay an honest wage. In Trinidad there are so few ways to ease past an income crises and moneylenders charge 25 percent a week, believe it or not and the banks are nothing but modern versions of Shylock.