How to stay away from burden of debt

Using credit / loan facilities wisely for overcoming the burden of debt and living a debt free life

Debt, Loan, Credit - In the modern world human beings have evolved to a currency based economy and the ancient barter system is not in common practice except few instances where both the parties i.e. the buyer and the seller readily agree for exchanging their goods or services for mutual benefit.

Growing necessity of availing credit facilities in modern lifestyle

With the onset of currency as the primary mode of trade or exchange of services the need for availability of loans or credit also simultaneously increased.

Credit is the easiest way to increase purchasing capacity

The credit is one of the easiest way of increasing ones purchasing power for a particular purpose and it is easy to repay the accrued debt as per agreed tenure & instalments which also includes certain charges, processing fees and interest as primary element in the equated monthly installments.

Credit is good if used with lot of discretion and wisdom but if the use of credit facilities overshoots ones income then it is certainly a negative sign and one must urgently find alternative ways to spend wherein a scenario must be urgently encouraged of spending as per ones income.

Word of caution in ancient / modern Indian Philosophy on wisely using credit facilities

Great Indian poet & writer Kabir Das who lived in 15th century in one of the important couplets (Doha's) indicated that one must stretch expenses only as per their capacity.

This shows that the evil of debt existed in those periods too when our needs were not so complex but relating the same to modern economics it is true that one cannot ignore credit / loan facilities in totality but yes the idea of spending wisely as suggested by Kabir Das still holds good in the current context.

Overspending habits main cause for misuse of credit facilities

The modern spending habits are one of the main factors of ever increasing use of credit / loan facilities which we regret later when it turns up in the form of hefty bills to be paid by us or else one has to pay hefty penalties.

The Philosophy behind overspending

The philosophy behind this overspending is that while using digital currency we don’t fee the pain as was the case in spending ordinary currency manually counting each hard earned note with fingers which was physically possessed by individual and parting with each currency note made a big psychological impact.

This is not so In modern era of digital payments where our bank account value is simply represented like the points we use for playing digital games. Spending is now no more counting physical currency notes rather it has become as easy and facilitative like pressing a button to pay.

Spend on necessities rather than avoidable luxuries

Here it is extremely important to appreciate and understand that we must not turn miser and live a life lacking all basic & essential amenities rather is suggested that if we are blessed with resources we must spend on ourselves since wealth wont go with us in the journey we all take after end of this life.

Need to urgently start Philosophizing habit of spending carefully

What is important is that we should start philosophizing the habit of spending wisely on utilities in form of essential commodities & services that are must for maintaining a decent living standard rather than overspending on those items or services which are not useful for ordinary sense of living.