4 Things that Make People Poor: #2- Debt

The second thing that make most people today poor is the word called - "debt".

Debt is why most of people today are poor. The following is the typical story how debt (bad debt) affecting most people life. Consider a young person who just come out to work. He or she will rent a small apartment and work as an employee. Then he or she will meet someone. Times goes on, they fall to each other, then they get married. For time, life is sweet and fruitful, since now 2 person can live with 1 expenses. Now, they both able to set aside a portion of money every month as saving. Then, they finally be able to buy the dream of most of young couple, their first home from their saving as down payment and taking debt from bank. Now, they have a new home, so, they need new furniture and new toys. So, they become prey to the ads like easy payment and delusion cheap credit. Few years later, they finally got their first baby, and now they need more money to give a good life to their baby, thus, the only solution, more debt. By now, the couple will forever trap into debt, working for debt. Everything they earn, will go back to repay their never repayable debt. And they end up retire poor and destitute.

The story has illustrated the most typical bad debt that make people poor:

1. The long term debt - home mortgage
2. The short term expensive debt - unsecured debt, personal debt, credit cards

This simple one typical life pattern has cause million if not billion of people globally unable to become rich, and live poorly forever after.