The word ‘debt’ is quite possibly, one of the most dreaded in the English dictionary. This short, but pointed noun defines liability or financial obligation which if not repaid, according to a pre-arranged agreement with a borrowing partner, can cause irreparable damage to an individual’s credit reputation, affecting one’s ability to access future loans, or save for significant life events such as retirement.
Too much debt can also severely affect other important aspects of an individual’s life. An activity such as building a ‘rainy day’ fund may be crippled as all earnings are directed toward servicing loans.
In today’s economy where ‘live money’ is scarce, it is easy for individuals to accumulate debt, where routine expenses especially, such as utility bills and grocery purchases can become overwhelming.
Likewise, businesses also face the risk of becoming indebted, particularly micro and small businesses that do not have the excessive financial resources or access to funding that larger companies do. Borrowing for activities such as product development and business expansion, can therefore be risky, since there always exists the reality that sudden shifts in the market or under researched opportunities will result in loss of borrowed investments.
To continue reading , purchase Vol. 7 #8 2015 issue
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The word ‘debt’ is quite possibly, one of the most dreaded in the English dictionary. This short, but pointed noun defines liability or financial obligation which if not repaid, according to a pre-arranged agreement with a borrowing partner, can cause irreparable damage to an individual’s credit reputation, affecting one’s ability to access future loans, or save for significant life events such as retirement.
Too much debt can also severely affect other important aspects of an individual’s life. An activity such as building a ‘rainy day’ fund may be crippled as all earnings are directed toward servicing loans.
In today’s economy where ‘live money’ is scarce, it is easy for individuals to accumulate debt, where routine expenses especially, such as utility bills and grocery purchases can become overwhelming.
Likewise, businesses also face the risk of becoming indebted, particularly micro and small businesses that do not have the excessive financial resources or access to funding that larger companies do. Borrowing for activities such as product development and business expansion, can therefore be risky, since there always exists the reality that sudden shifts in the market or under researched opportunities will result in loss of borrowed investments.
To continue reading , purchase Vol. 7 #8 2015 issue
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