What is Debt? Debt can be simply understood as the amount owed by the borrower to the lender. A debt is the sum of money that is borrowed for a certain period of time and is to be return along with the interest. The amount as well as the approval of the debt depends upon the creditworthiness of the borrower.
I think all of us have a debt or credit, especially here in North America that credit is important. Credit Score is important here, it’s part of you or sometimes your identity. How do you manage your finances? Debt is a very sensitive topic. No one is comfortable talking about it, but not me. I have debt and was in deep debt when I was single. I pawned jewelry, borrowed money left and right and asking for donations. All these were not for my personal desires. I am the bread winner of the family, although, I’m not the eldest and I’m not even forced to do this. I just grew up and suddenly it became my norm to help my family, particularly my parents. I know some will see it as not a good idea because look how I was in debt for something that is not for me, not for my needs and not even for my wants. I tell you; it was difficult. I don’t want to reach out to friends, but there are times I had too but what I am so proud of is that I never borrowed from a friend and did not return the money back to them. I did reach out to the bank; I was more comfortable not paying the bank rather than my friends. I also borrowed from stranger or not close friends but with interest and as usual I also paid them back as that is their personal money that they helped me with.
For me borrowing money from a friend includes respect. They help you and so you respect them. Paying them back on time is also a sign of respecting them. Remember, you have nothing, and they sacrifice their hard-earned money to lend you but that doesn’t mean you don’t pay them back. Give is different from borrowing. I can go on and on with this as this is such a broad topic, but I want to stick to short topics that’s on my mind. I’ll share something more next time. Please remember to respect the person who help you when you were in need.
Being in debt or carrying a debt is generally not a fun thing. My advice is to try to avoid debt but if you must go into debt, be responsible with it. If it gets out of control, it can cause you sleepless nights and ruin your reputation.