If you are serving a debt and have agreed to pay back a debt over time and pay interest on that debt you are an indentured servant to the creditor who gave you the loan. Interest owed guarantees a period of indentured servitude.
Debt is everywhere in the U.S. today, and it’s a problem. The U.S. Government reportedly has nearly $14 trillion of debt and has another $65 trillion to $100 trillion of unfunded future commitments. Individuals are going bankrupt at an alarming pace. Foreclosures are at all time highs. The average U.S. family carries between $11,000 and $12,000 of credit card debt at very high interest rates. Every 5th family in America is living in the “credit card penalty zone” and paying outrageous interest rates and huge penalties. According to the American Bar Association 89% of divorces can be traced to quarrels over money. Banks and financial institutions are also in trouble because of the terrible high-risk loans they’ve made.
Middle class Americans live lives of quiet desperation today. Many are barely making enough to pay their monthly debt payments. They serve their creditors. What little is left over goes to taxes. They have become indentured servants with little freedom remaining. Anything they might have saved for retirement is eaten up by interest on debt and taxes. They have little hope of ever living debt free let alone of enjoying a dignified retirement.
Many Americans have not learned that they won’t become wealthy buying things they don’t need with money they don’t have (borrowed money). Taking on debt to buy things they want with money they don’t have is how they make the banksters wealthy. They would do better to get out of debt, build savings, and reduce their commitments to being indentured servants.
Ask yourself: Would you prefer to live as an indentured servant or as a free person? If you are suffering under this form or bondage, who put you there? Was it the choices you’ve made? Is there anything wrong with repeatedly choosing to enter this type of bondage? Are there any advantages to minimizing debt and indentured servitude? What are the risks you submit yourself and your family to as you increase your debt levels? Have you ever considered that interest owed on debt is a cut in pay? Does it cost more to buy something using debt that it costs to pay cash? Do you have a choice?
One of my friends recently bought a $42,000 car on contract that he can’t afford. He’ll make payments for the next 60 months. Another friend, who makes as much or more than my first friend decided that he could get by with a used car he purchased outright for less than $1,000. He will bank an extra $600 per month that he might have used for a car payment. In 48 months he’ll pay cash for a newer car. Both will have made payments, one for a car and one to a savings account. One chose to be an indentured servant for 60 months, the other to live more modestly and invest the savings. One will pay thousands in interest to his creditor the other will pay not a penny in interest while he builds capital and earns interest. They each chose a path with predictable outcomes. One for better and one for worse.
Americans who have wracked up a lot of debt are finding it hard to repay that debt, especially in a difficult economic environment that promises to become even more difficult. Why is it so hard to repay debt? Debt is repaid with the money remaining after tax and after living expenses. That is often a small figure. As people choose to add new debt to old debt the problem compounds. As they refinance to deal with the larger debt loads they extend the term, often endlessly. Those who borrow at high interest rates (such as credit cards) exacerbate the problem.
When we lack a debt elimination or debt avoidance plan and when couples lack the shared discipline to follow a debt elimination plan or a debt avoidance plan, future failure is almost guaranteed. Most couples have never taken the time to evaluate their debt and define a debt elimination or debt avoidance program.
Most middle class Americans can choose not to become indentured servants. Simple tactics can be applied to help avoid or escape indentured servitude. Here are a few things to try if you are are just starting out or if you are already suffering under the bondage of debt:
1) Ask yourself before purchasing something: “Do I need or only want this item?” If it’s not a need, you may wish to avoid the purchase or at least delay it until you can pay cash. See the article “Thrift And Contentment Are Your Answers” here: https://www.area-info.net/articles/show.php?cty=Providence&st=Utah&article_id=935
2) Avoid using credit cards unless you discipline yourself to pay them off monthly and thereby avoid the high interest debt they foster. Always be aware of your total running monthly expenditures. Track your spending so as to live below your means.
3) Understand the true and full interest cost of any debt you are considering entering into. You may choose to wait until you can pay cash to avoid paying the interest.
4) Practice making the payments on a debt into a savings account for a few months before committing to the debt. This will allow you to evaluate your comfort level with the debt before committing to the indentured servitude. It will also help you to build a larger down payment.
5) Instead of using debt to purchase, save for the item you need and pay cash for it. Avoid the interest bondage and cost and practice the self discipline. It may be that you will find that by the time you have saved the money for the item you don’t need or want it anyway.
6) Buy insurance to pay for unexpected calamities such as sickness and death.
Of course if you are in debt there are many ways to get out of debt. See my article on “50 Ways to Leave Your Lender”: https://www.area-info.net/articles/show.php?cty=Providence&st=Utah&article_id=827
Consider a life of thrift while you build sufficient capital to allow yourself to pay for your family’s needs in cash rather than using debt and paying interest. This may require some humility, discipline, and team work, but it can be done. As you pay cash and avoid interest payments you will find it easier to build capital and savings. Once you have enough savings you can become your own bank. For example, loan yourself the money for a car, but then pay yourself back. In this way you’ll have money when another car is needed, but you will have avoided the indentured servitude and the hateful interest payments. Learn to despise debt for personal purchases. Teach your family not to be “suckered” into debt payments.
Avoiding interest is the same as receiving a pay raise. Learn and teach that the most expensive way to buy anything is to use credit to buy it. By using credit you have to pay the price of the item and the interest cost as well. Teach your family to limit themselves to living within their means. Preferably, they should learn to live below their means so they build capital and can act as their own bank.
You may wish to read my short article “How to Become Free of Debt Without Destroying Your Lifestyle”. It can be found here: https://www.area-info.net/articles/show.php?cty=Providence&st=Utah&article_id=819
Live free; avoid indentured servitude.
Disclaimer: Investing in stocks and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. Precious metals is not for everyone. I promote precious metals as an affiliate of American Gold Reserve. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I might make that you will realize any return. Beware, all commodity markets and other markets carry risk of loss.