Article by Ken Triat
“Spend, borrow; borrow, spend,” the bankers urged. “No credit, slow credit, bad credit, no problem. If you own your own home, we’ve got a loan for you. No equity needed.” We see it every day a new way to loan money, extend your credit card limits or the use the equity in your home and the great things that you can buy from this new found wealth. Wealth Creation without working for it, on a scale not seen before. Where scant regard has been made of the impact of this added credit and its repayment. As geed is good, have it now pay for it latter was programmed into us by the media at all levels. Personal debit has now become a major issue and any economic downturn and associated reduced employment will have direr consequences let alone a round of interest rate rises.No wonder that bankruptcies have climbed to levels 10 times higher than they were several decades ago. In a crisis that is on a scale never seen before in the world of finance. The computer modeling that said there was little risk has been found to have holes wide enough to drive trucks through. It is rippling out of America and engulfing areas of the finance never impacted on before. There is foreclosure disasters being recorded every day, the loose-pocketed purveyors of credit are now reaping what they have sowed. Levels of debt held by some banks are causing runs on their capital forcing Governments to step in with public money to stem the cash outflows.
Gary Eldred PhD is Professor of Real Estate at Trump University put it this way.Weakness of Will and Financial Discipline
1. In adopting the sales approach, the bankers knew that millions of people would jump at the chance to spend and borrow now, and then think about the destructive consequences later. 2. Because let’s face facts. Home equity borrowing vanquishes your capacity to build wealth. If you do use it, use it only for productive investment that offers low risk for good returns. (As the old advice goes, “Never dine on seed corn.”) The data on home equity loans overwhelmingly show that borrowers most frequently put the money they borrow into consumption, including ill-considered home improvements or extended overseas travel.3. What about consolidating your bills or paying off high-interest-rate credit card balances? Again, prudence says no. Rather than paying less interest, this approach often leads to even more debt. Why? Because borrowers who wrap their credit card balances and other bills into home equity loans (or refinances) temporarily minimize the pain of debt. Yet, with a longer term and lower payments, the debt generates higher long-term costs. Even worse, many borrowers run their credit card balances climb right back up to where they were previously.
“Thank goodness the home went up ,000 in value last year,” they think. But meanwhile, wealth destruction continues.
Use the powers provided by the Universal Laws and the Law of Attraction to build your own wealth creation so that you don’t use others. Build your own goals; don’t let others build your goals for you by including you in their goals where what those have in store for you is little at all and more likely,” but a life living with debt”.
About the Author
Ken Triat has a master’s degree in Business Administration. Currently reviewing personal development centered around the power of the mind using the Law of Attraction.Subscribe to his list at http://www.physicsofgettingwealthy.com/rights to receive your Free Attraction Accelerator Report to learn how to make The Law of Attraction work in your life.Visit his website today at http://www.physicsofgettingwealthy.com
