Slowdown in Economy Presents Opportunity to Escape Debt Trap
One of the main causes of the current foreclosure crisis and economic recession is the insidious power of debt in all its forms. Homeowners took on mortgages for houses they could never afford, while auto loans facilitated people’s own inflated perceptions of themselves and credit card and consumer goods advertisements worked hand in hand to persuade people to buy now and think about how they would pay later.
Now, with the number of foreclosures and bankruptcies rising to record levels, the greatest fear many people have is that their credit scores will drop and they will not be able to borrow as much in the future. Thinking of this sort, though, is still giving in to the false perception that homeowners or consumers should be judged by how much banks will lend to them and how many Chinese-made plastic pumpkins they can purchase compared to their neighbors.
In other words, judging oneself by one’s borrowing capacity results in nothing more then empty human beings who feel they need struggle to buy more just to keep up with other people who are struggling to buy more. When the facade collapses, due to an inevitable job loss, medical crisis, or other financial emergency, far too many people believe that maintaining their credit rating will allow them to solve problems that resulted from their over-reliance on borrowing their way through life.
Even worse, though, is that the credit trap has so ensnared some people that it is almost impossible to get off the track leading them to financial disaster. Making too little money and having too many expenses to begin with, in addition to servicing a large debt burden, is a situation where families are almost guaranteed to end up in bankruptcy or worse. The people who have little choice but to take their borrowing habit to its logical conclusion are relatively smaller than the ones who have a choice, however.
Even the homeowners who have a choice of what purchases to make and how to pay for them, though, are severely disadvantaged. From an early age, every American is exposed to constant advertising and subtle messages that self-worth is dependent on the amount of things they have and size of those items. The pursuit of happiness is defined as the pursuit of machines which are slightly bigger than the machines owned by the neighbors.
In fact, it is the multinational corporations that market these machines that drive people into the willing arms of the multinational banks, which will help people finance their machine purchases. Both institutions work together to chain Americans to perpetual debt servicing payments, or embarrass them financially for nearly a decade through low credit scores or banking blacklists.
With the current recession affecting so many average Americans, hopefully many of them will begin to wake up to this system of credit traps and lifelong debt enslavement. Many homeowners will face foreclosure and families will have to file bankruptcy to escape debt payments they can not meet, but this may only have negative consequences for the banks who create money out of thin air and expect people to pay back interest that never existed in the first place.
People unable to stop foreclosure or avoid discharging their debts through bankruptcy will be given a chance to start their financial lives over and either repair their credit rating or begin to avoid the whole system of debt. With some experience of how destructive this system has been in their own lives, more people may make the right decision and live within their means and only purchase items that they can pay for without becoming the slave of a bank or other creditor.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important mortgage foreclosure help and resources. The site describes various methods that may be used to save a home, such as deed in lieu of foreclosure, cash for keys, short sales, loan modification, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/
Article Author :Nick_Adama
Last 5 posts in Debt Relief
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