By: Ana Fernando, Account Executive at Debt Recoveries Australia
Over the years, debt has been tagged as something that is shameful, something that is bad, and something that can destroy people. Whilst some people think that debt is all about “bad things,” I personally think that having debt is not that bad after all.
Debt (if that is the only option left) can help save lives, feed a hungry family, can save a business that is about to go bankrupt, can help a student or someone to fulfil his dreams.
So if debt is not that bad after all, how can debt lead to bankruptcy?
I read an article several months ago about these two young individuals who both decided to start up a small general store. Both had the same capital of $5,000. After a month, both earned an extra $5,000 but they reacted differently to their earnings. Business Owner A decided to purchase a new smartphone worth $5,000 while Business Owner B decided to add his earnings to his capital which gives him a total of $10,000.
1. Debt can lead to Bankruptcy if we do not know our priorities.
People nowadays are so busy watching and following the latest trends such as clothes, gadgets and travel destinations, which psychologically affects their behaviors and the way they see themselves. Little do they know, such things can slowly lead them to bankruptcy as they would do anything just to get, buy and go to places they see others are enjoying. They borrow money, apply for loans, spend a big portion of their salary just to get what they think they need or want.
2. Debt can lead to bankruptcy if we do not know when to stop.
We, as individual has the tendency to be just like the Business Owner A. We tend to value the material things more than to wait for the right time when we can fully have such privileges. We tend to fast forward everything as we do not want the “hard part.” Result? In the end, debt can leave us unhappy, devastated, empty and alone.
3. Debt can lead to Bankruptcy, if we do not know how to wait and value what we already have.
People are so busy chasing rocks over diamonds because what they think to be important and valuable may not be the case. We are all so busy trying to look good, trying to please everybody and the main reason why we tend to resort to borrowing money to suffice our “cravings.”
What Can I Do?
Just like technology, debt has both its good and bad side depending on how we use it. If you are an individual suffering financial hardship or has debts that you think you can’t pay anymore, do not be disheartened. You can seek help from a Financial counselor . You can contact Financial Counselling Australia on 1800 007 007.
Don’t be afraid to contact your debt collection agent and talk to them about your outstanding debts. You may be surprised how much we are willing to work with you and help you avoid bankruptcy.
ADC Legal Litigation Lawyers is a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at email@adclegal.com.au or call 1300 799 820. Talk to us about your litigation or dispute concerns via Skype at adclegal.