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Long before recession caught the world in its grips, so many already lived in debt. The belief is that debt helps to fuel the economy. It is debt that enables society to pursue their quest for material satisfaction--to enjoy or have a taste of the good life. Debt does not respect social, age, economic or financial status of the debtor.

In economics, consumer debt is outstanding debt of consumers, as opposed to businesses or governments. In macroeconomic terms, it is debt which is used to fund consumption rather than investment. It includes debts incurred on purchase of goods that are consumable and/or do not appreciate. (reference)

Students finish their college education and yes, deep in debt. They have not started a life on their own and already, they expect many years ahead with almost every paycheck marked for payment of student loan and other debts. This is one sector of society. There are many graduates with a degree and unable to find employment, or get stuck with low-paying jobs.

Many expectant brides dream of a wedding with all the trimmings. There are the lucky ones who have financial backing from family, or the prospective groom has healthy and deep pockets. There are those who are able to save for the big day.

In some cultures, guests are expected to give cash as presents. You would not dare attend the wedding if all you can afford is $50.00. Despite this financial contribution to the wedding expenses, this only pays for part of the dinner. Add to this other personal items for the bride and bridal entourage and the groom. A couple starts their life together already in debt.

Housing is a major expense. In the boom years prior to the recession, the housing industry mushroomed to unprecedented levels. But, buying a home was not just a sad story--it was tragic. Younger buyers wanted it all--fully furnished homes, with all the latest in technology, gadgets and gizmos. They also wanted the latest in wheels. It was a good life--seemingly.

Then came the recession. Major and well established financial institutions were going bankrupt taking down with it some countries. There were many who, all of a sudden, are swimming in debt, with maxed out credit cards, homes, vehicles and other toys were getting repossessed for non-payment. Recession also came with thousands of jobs lost. To this day, there are many who have not recovered. Families split up, so many went hungry and still are. Today--there is a real threat of the disappearing middle class.

But did society learn a lesson from the recession and economic downturn? Some had no choice but to adopt and adjust to a major and drastic lifestyle change. A way of that life that understands the big difference between want and need. There are many who still choose to live in debt to support a high-maintenance lifestyle. Society is bombarded with appealing lifestyle advertisements of every product via the powerful print and cyber media. Taunting and always whetting the appetite for the good life--just with the swipe of a credit card.

A lifestyle of convenience, instant gratification and too many gadgets come with a price. Young families have to satisfy the wants of every member of the family. This is not cheap. How many families live within their means? This is difficult in this day and age. There is so much to want. People in the prime of life live in debt. Anyone who depends on credit cards to support their lifestyle need to stop and think. You will not always be young and healthy and employable.A moment can change your life and dash your ambitions and dreams.

There are many who can only make the minimum payment each month. This is worrisome. The convenience of credit comes with a very high interest rate--credit cards, payday loans and other means of credit. Somehow, society is left with the burden of dealing with this. Irresponsible lenders are everywhere, contributing to the collapse of the housing market and the economy. So many live with the burden of accumulating consumer debt beyond their means to repay, almost no liquidity, increasing inflation and uncertain job security.

OCC Advisory Letter AL 2003-2 describes predatory lending as including the following:
Loan "flipping" - frequent refinancing that result in little or no economic benefit to the borrower and are undertaken with the primary or sole objective of generating additional loan fees, prepayment penalties, and fees from the financing of credit-related products...

Some are lucky to live in a country with socialized medicine where getting sick does not drain the already empty pocket. But there are many who must ask the question, what if a family member gets sick, can you afford the medical bills? Do you have an emergency fund set aside for that purpose?

What about retirement? We all head that way--the golden years. How sure are you that the pension fund you pay into will be there for you when you retire? Would you have enough funds to retire on and still enjoy a comfortable life?

We live in a world economy that is buried in crashing debt and a threat of bankruptcy.There is hope, but it takes dedication and commitment to oneself to manage and control personal debt. We all need to take heed, before our personal economic state crashes. We all need to take personal interest in the management of our personal debt.

Reference material: Consumer Debt - Wikepedia, information retreived from Investopedia Aug. 24,2011

Bonnie Moss writes to inspire and to motivate her readers to explore the depths of their heart and soul and make a difference in this world. She draws from personal experience and her interest in spirituality. Visit her website:

http://goldencupcafe.org

By Bonnie Moss
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