Avoiding the ‘Debt Trap’ and managing our money
The borrowing system is a trap that many of us fall into. We see a house we want to buy, a car we want to drive, or a vacation we want to take, and we don’t have the funds to pay for it. So we turn to borrowing money from banks and other financial institutions. But what we fail to realise is that once we borrow money, we are no longer in control of our finances. We become customers who are owned by somebody else, and they have authority over our finances.
The idea that borrowing money makes us trapped is not a new one, but it is one that we often overlook. When we borrow money, we are not just borrowing money, we are also agreeing to pay interest on that money. This interest can add up quickly and can make it difficult to get out of debt.
So how can we reframe the way we think about borrowing money? The first step is to understand that we are in a system that is designed to keep us in debt. Banks and financial institutions do not want us to pay off our loans and leave them. They want us to stay and borrow more and more money. This is because the more we borrow, the more interest they can charge us, and the more money they can make.
