Most Americans are currently trapped in what’s known as a cycle of debt, which is the financial existence of perpetually being in debt to one or more parties. It’s described as deplorable, a virus, and even a death trap. By extension, the occurrence of debt itself is seen as a personal failure that no person in their right mind would willingly inflict on themselves.
This is a very skewed and inaccurate way of looking at finances. First, debt isn’t a condition, it’s a side effect of the fact that the borrower acted ignorantly in the handling of their assets. There’s no other way of describing it; to place the blame of poor financial conditions solely on debt is similar to blaming the hammer for hitting your thumb.
Not Following the Exit Sign
Loan companies such as http://utahmoneycenter.com, and even some banks, are making it easier for people to be able to pay their debts, but most still find it difficult to get out of the cycle. It’s not that financial institutions aren’t doing enough to alleviate the influence of debt. People who can’t get out of debt almost always fail to recognize why they’re in a financial hole, and are repeating the habits that got them there in the first place.
There are many ways to explain this, but the simplest is in the age-old adage “living beyond their means.” There comes a time when a person lives with expenses beyond their net income, then they begin borrowing to maintain the lifestyle they’ve grown accustomed to. This is fine for a time, but there needs to be concrete plan for the money flowing in to eventually become greater than the money flowing out.
Going Through the Exit Sign
There is a way out of the debt cycle, but it requires significant lifestyle changes as well as vigilance in monitoring the flow of money. Understandably, this is much harder for families than for private individuals, but not impossible.
The point is, people are content to blame the government, and Wall Street, for their problems while repeatedly doing things that put them down financially. There are many ways to get out of debt cycle, but very few of them are easy. It’s easier if there’s someone to help you along the way, but the initiative to change needs to come from the people affected first.