Debt doesn't announce its coming, it is accumulated by an individual through carelessness and lavish spending. A popular saying is that "money is a spirit and it vanishes quickly" if care isn't taken. The more money we make, the bigger our needs become. Making millions without proper planning tends to poverty because spending money is easier than making money.
Working hard every month as an employer with a meager salary that probably won't be used for anything than payment of an accumulated debt before the end of the month. A lack of proper financial planning can lead one to debt this is why budget-making and thorough financial decision making is necessary for an individual's financial life.
Financial competition makes humans run into debt, and comparing yourself to another person is one of the mistakes humans make. You want to spend lavishly at parties just like your friends, you want to wear designer clothes and shoes, and carry designer bags forgetting your income which is not properly secured and in the long run such a person runs into debt.
Debt tags one with a bad name and it brings disgrace and humiliation. Being indebted to someone doesn't bring peace of mind, it only increases the chances of high blood pressure. Someone might ask what if I'm getting a loan to invest in a profitable business? I will say if you are getting a loan for business investment, be sure the business you are going into is what won't lead you into debt.
I experienced a scenario of a woman in my neighborhood popularly known as "Mama Show". She is known to be a big spender at every party she attended, and lots of people envy her because of the way she does spend lavishly unknown to the world that most of the money she spends is collected as loans from banks and cooperative societies using her house and shop where she sells clothing materials as collateral.
Gradually sales dropped and she isn't getting many profits or returns from her business. The loans she collected are due for payments and unfortunately for her, she couldn't repay her lenders, and her properties were seized, in the long run, she ran into accumulated debt. She wanted to be the talk of the town, she wanted to be known as a big woman but in the end, she lost it all. She thought she had all it takes to be who she wanted to be without proper financial planning to avoid debt that may be the end of her.
Planning ou finances to manage debt is a key component of how to live a wealthy life. The best ways to properly financial planning against debt are setting your top financial goals, making sure your goals are smart, proper budgeting, lowering your spending, tracking your spending, and getting out of debt as little as it may seem.
Living a good life is what every human craves but living above your income all because you wanted to belong to the spender gang can lead one into debt. Being careful in the way you make decisions or spend money is the best way to avoid unnecessary risks.
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