THE CONSUMER DEBT DILEMMA
So many people all over the world fall into the trap of “buy now, pay laterâ€, “enjoy now, pay laterâ€, “travel now, pay later†or even “study now, pay laterâ€. In all of these scenario, of course, the last one is best justified, and is a good investment if you think about it. But this is anchored on the premise that you will definitely get a good-paying job immediately after college, and that you will be faithful to your obligation to pay as soon as you do. For the other instances, some just simply indulge in the vice of spending what they have not yet earned. That’s the painful truth. The same scenario applies to others, with the only difference being the application of consumer debt not to commodities and low-cost items in bulk, but in acquiring properties like a family home or another car, and then subject these properties by way of security to real estate, or chattel, mortgages as the case may be. But when economic reverses occur, some seem to have no backup plan, and nowhere to get their loan payments, thereby subjecting themselves to higher interests, past due penalties and other late charges, until finally they cannot make a single decent payment anymore.
An individual’s debt consolidation refers to his outstanding obligations constituted by way of credit card bills, store cards accounts, car financing schemes, personal loans, retail or installment loans for certain items, or real estate and chattel mortgages. Usually, a person gets into so much debt he cannot seem to find a way out any longer, and he ends up victimized by more “predatory lending†and goes deeper and deeper into debts.
Good thing there is now debt calculator, where an indebted person gets to transfer all his outstanding debts into one bill or one account, which supposedly would diminish interest, eliminate penalties and extinguish past due payments.
