Are debts positive or negative?
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What are the positive sides of debt? It comes in handy whenever you are short of funds or may be planning to buy a home for which you don’t have the exact money in your bank. You can apply for a loan or use your “plastic money” and more importantly, you can repay the cost in easy monthly installments.
The negative side of debt is you can actually end up drowned in too much debt. Remember that when you incur debts, there is always the presence of interest rates that come with it. It is only with the passing of time that you may realize more of your money is going to pay interest than towards reducing the principal. You must be able to repay the debt faster than the interest accrues, or your debt will increase steadily. You need to think about how to get out of debt.
Throughout the years people have been critical of debt. From the Marxist viewpoint, debt is seen as a form of slavery; the debtor is not legally owned by the creditor but he is bound to perform labor or work to repay the debt. If you’re currently struggling to repay debts, you can probably see some validity to this viewpoint!
Huge debt accumulation also affects the economy of countries. Historically, too much debt has been blamed for economic instability. Because of huge debt, stock markets dropped; deflation then came into the picture; consumption and investment were reduced. In effect, expectation for future returns decreased. Because demand fell, unemployment increased. Bankruptcies in huge numbers can be a consequence of debt, leading to a decrease in demand and deflation.
This is all very interesting, no doubt, but if debts are causing you grief, whether or not it helps the larger economy, you probably need to do something to get back on track.
Follow these links or more information: Debt, Get Out Of Debt, Learn how to earn and how to save paper money from inflation with silver bullion!
May 22nd, 2009 23:31
Can you tell me who did your layout? I’ve been looking for one kind of like yours. Thank you.
May 23rd, 2009 14:32
I made it myself. I took a photograph, played with it in GIMP and used it as the banner.
June 2nd, 2009 18:08
da best. Keep it going! Thank you